The renewed selling pressure against the British pound helps EUR/GBP expand the recovery above the 0.8300 level. he euro got off to a positive start in the new trading week, as fears surrounding the Chinese virus COVID-19 have subsided and the mood of investors has improved.
UK PM Johnson spokesman recently said that nothing special is expected in negotiations with the EU, and this has undermined optimism about a trade agreement. From the economic calendar, we are expecting British labor market data on Tuesday, January inflation on Wednesday, retail sales on Thursday and the PMI service on Friday. From the Eurozone there will be the publication of the ECB minutes of the meeting on Thursday and the Eurozone PMIs will be added on Friday.
The pair’s daily gain is currently 0.34% at 0.8329 and the next resistances are 0.8433 (21-day SMA), 0.8471 (55-day SMA) and 0.8537 (monthly high on February 4) ). On the other hand, supports are at 0.8295 (2020 low February 13), 0.8275 (2019 low December 13) and 0.8248 (monthly low July 2016).