The EUR to GBP jumped to seven-month highs as investors dump the British pound after Bank of England Governor Andrew Bailey, said he would not rule out giving money directly to households amid the economic ’emergency’. Governor added that the coronavirus outbreak represents an unprecedented economic emergency and the Bank of England (BOE) will do anything it takes, even radical money printing operations if it needs to.
The British pound is under heavy selling pressure despite the Bank of England, and the UK government introduced a monetary and fiscal stimulus aiming to combat the coronavirus outbreak impact. GBPUSD is also under selling pressure and as of writing makes fresh four year lows at 1.1801.
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EURGBP is 1.14% higher at 0.9224, as the rally is still in intact for the eighth consecutive trading session. The outlook is bullish as the pair hovers to an extreme overbought area; the RSI 14 reached at 84.99 a level that we haven’t seen since 2016. for the pair as it makes higher highs and higher lows for sixth consecutive sessions.
On the upside, immediate resistance stands at 0.9271 the daily top. A break above might challenge the next resistance at 0.9276 the high from August 14, 2019. The next resistance zone will be met at 0.9324 the high from August 12, 2019.
On the flip side, first support for the pair stands at 0.9067 the daily low. Next support for EURGBP will be met at 0.8978 the low from March 16. More bids might emerge at 0.8839 the low from March 13.