EUR/GBP retreats, unable to break 2016 highs

The euro is falling against the pound on Tuesday, retreating after finding resistance around 2016 highs. While EUR/USD is testing today the 1.1200 support, GBP/USD is recovering and currently attempting to rise above 1.3000.

Worst day since early September

EUR/GBP  rose yesterday toward 2016 highs that lie at 0.8724 but after reaching 0.8716, it turned to the downside, ending the day below 0.8700. Today during the European session it approached again the 0.8700 area but it failed to rise above and weakened.

It accelerated the decline during the last hours, showing a similar pattern as the EUR/USD pair. And now, as GBP/USD rises to test daily highs, EUR/GBP printed a fresh low at 0.8618.

From yesterday’s high, it has fallen almost a hundred pips and today is down 0.58% for the day, having the worst performance since September 2.

After days of being under pressure in the market affected by Brexit, the pound today is recovering but overall today’s rise could be seen as a correction so far. Regarding the EUR/GBP the correction started from the key resistance area 0.8700 - 0.8725; a consolidation above that area appears to be needed to open the doors to more medium-term gains.

To the downside, relevant support could be seen at 0.8560 (Sep 20,22 & 23 low) followed by 0.8490/0.8500 (20-day moving average / Sep 8 high).