GBP price, news and analysis:
- EUR/GBP has dropped in recent days as the UK’s Covid-19 vaccination program has proceeded at speed, in contrast to the EU’s rather slower pace.
- However, a minor retracement higher is on the cards if the cross can close above the 0.85 level.
EUR/GBP retracement higher on the cards
EUR/GBP looks ready to retrace some of its losses recorded over the past fortnight, particularly if it manages to close in New York above the 0.85 mark. However, the long-term trend lower remains in place and any short-term rally will likely be short-lived.
EUR/GBP Price Chart, Two-Hour Timeframe (March 23 – April 6, 2021)
Source: IG (You can click on it for a larger image)
of clients are net long.
of clients are net short.
Behind the losses in EUR/GBP lies the difference in the coronavirus vaccination programs of the UK and the EU. In the UK, more than five million people have now received a second dose of the vaccine and first doses have been given to 31.4 million. By contrast, the EU has lagged behind and while the UK is easing some restrictions, France is seeing more people in intensive care.
Note though that the German vaccination program has now picked up and the country’s health minister said Monday that Germany will have immunized 20% of its population by the beginning of May. That should help EUR/GBP near term.
However, the cross faces resistance from both the psychologically-important 0.85 level and from the 20-day moving average that has also provided resistance over the last couple of weeks.
( 09:04 GMT )
Recommended by Martin Essex, MSTA
— Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex