EURGBP rises as delay of an end of Covid restrictions and Brexit tensions weigh on pound
The EURGBP rose in early European trading on Tuesday, regaining strength after last Thu/Fri drop on dovish ECB.
Brexit tensions and delay to end Covid restrictions for another one month, due to rising numbers of rising number of new cases of Delta variant, increased pressure on sterling.
Fresh bounce add signals of basing after the action in past one month repeatedly failed to clearly break important support at 0.8566 (Fibo 61.8% of 0.8472/0.8719) and signal bearish continuation.
Return into daily cloud (spanned between 0.8595 and 0.8623) eases pressure, but fresh bulls need sustained break through pivotal barriers at 0.8623/30 (daily cloud top / Fibo 61.8% of 0.8671/0.8563 bear-leg) to neutralize downside risk and signal stronger recovery.
Conversely, bears would tighten grip on repeated close below daily cloud base.
Res: 0.8623; 0.8630; 0.8646; 0.8661
Sup: 0.8595; 0.8579; 0.8566; 0.8530