EUR/GBP recovers on Friday but fails to hold above 0.8400

EUR/GBP  is about to end Friday higher but lower for the week. Today’s rally was not enough to erase all losses and it still continues to move under a corrective mode, retreating after hitting last week above 0.8620, the strongest level in two and a half years.

Today it bottomed during the European session at 0.8260, slightly above Thursday’s lows and then rebounded rosing more than a hundred pips from the lows. It peaked at 0.8416 during the American session and it was trading at 0.8376/81, 150 pips below the level it had a week ago.

GBP up for the week

The pound is about to post the first weekly gain after three weeks of important losses following the UK referendum. Now is moving with a corrective bias, but a consolidation on top of 0.8400 could bring momentum back to the euro.

Next week the main event for the pair will be the European Central Bank meeting on Thursday (no change is expected) while in the UK, economic data includes inflation (Tuesday), employment (Wednesday) and retail sales (Thursday).