EUR/GBP Slips to March 2020 Lows as Sterling Advances
- EUR/GBP remains in bearish momentum, breaks 0.8670
- Gold climbs 0.75%, zeros in on the $1,790 level
EUR/GBP Slips to March 2020 Lows
The EUR/GBP pair has continued its move lower on the back of a quick UK vaccination process and the Bank of England rejecting negative interest rates for the moment. The sterling keeps its steady buying momentum intact on Thursday. Which resulted in a renewed selling of the EUR/GBP pair for a fifth straight day. The EUR/GBP exchange rate dropped below the 0.8670 level. This rate was last seen in April 2020.
The price is now hovering near 0.8660. Which is a level well below the 200-day moving average, suggesting a strong bearish sentiment. Moreover, the MACD and the RSI, the indicators used to read whether an asset is in a bearish or bullish market, are strongly pointing to oversold conditions in the pair.
If this level is broken, the EUR/GBP bears could try to move the rate towards the next low, 0.8620, last seen on Mar 5, 2020. On the other hand, euro bulls could provide enough support for the pair to try and bring it back above the support level of 0.8670. And this is a double bottom along with the previous time the pair touched the mark on April 30.
A Comeback for EUR/USD?
In the medium-term, EUR/GBP remains in a bearish trend that started in December 2020. Since then, the pair has depreciated 6.00% to the current market price.
Elsewhere across the currency market, the EUR/USD is trying to stage a comeback. Currently, the pair is up 0.35% on the day and hovering near 1.2070. The euro also advances on Thursday against the Swiss franc and the Canadian dollar. While the US dollar remains relatively weak.
Gold is moving higher on the day, up some 0.75%, or $13 to an intraday high of $1,788. The precious metal was heavily offered throughout the week so far as gold bears pressured the price to a weekly low of $1,769, a three-month bottom.
The GBP/USD reached a four-year high earlier today as the price broke above 1.3950. The strong rally in GBP/USD has lifted the pair 22% since the pandemic lows.
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