The euro surged against the US dollar and the pound during the last hours. EUR/GBP is trading at 0.7734/38, slightly below yesterday’s closing price and far from the lows.
The pair earlier dropped to 0.7700 but the pound failed to break lower and price rebounded. During the last hour it accelerated to the upside as EUR/USD and EUR/JPY jumped to 1.1000 and 124.50 respectively. EUR/GBP peaked at 0.7746 and then bounced modestly to the downside.
EUR better in short-term, consolidation continues
The euro still remains in negative territory for the day but has moved away from the lows and it improved the intra-day technical outlook. On a wider perspective EUR/GBP continues to consolidate around 0.7700/30 after the correction from levels near 0.80 found support at the 23.6% Fibonacci retracement (of the 0.70 – 0.79 rally) around 0.7700.
A consolidation below 0.7700 could open the doors for an extensions of the correction while a daily close significantly above 0.7780 (20-DMA) could add strength to the euro.
(Market News Provided by FXstreet)