EURGBP slumped to a fresh 1.5 year low of 0.8421 on Monday morning. At the time of writing, the currency pair rebounded a little from the Asian session lows but remains at depressed levels. On Monday, the Euro slightly retreat from last week highs while the British Pound holding the gains against the major currencies.
One of the main reasons the EURGBP traded lower during the last couple of weeks, the EU and UK facing significant hurdles in relation to regional gas supplies as well as inflation throughout both economic blocks. On the other hand, the traders also waiting for the new updates from the new round of negotiations on Northern Ireland after London demanded extensive changes. On Friday, UK and EU Brexit negotiators have begun fresh talks in Brussels.
Moving ahead, the main attraction for EURGBP this week:
UK – CPI: GMT – 06.00 – WED
EUROZONE – CPI: GMT – 09.00 – WED
UK – RETAIL SALES: GMT – 06.00 – FRI
Technically the overall momentum remains bearish. For this week, the key support area is around 0.8400. On the upper side, the short-term resistance at 0.8455 any break above this level will open 0.8485 then 0.8510/30. On the other side, if the price break and close below 0.8400, the next immediate support to watch 0.8385/60.
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