EUR/GBP surges and rises toward 0.7400

By FXStreet FXStreet (Córdoba) – EUR/GBP broke to the upside after remaining steady since the beginning of the week. The pair rose above 0.7380 and climbed to 0.7394, approaching last week highs.

EUR/GBP: 0.7400 is the level to watch

On Thursday EUR/GBP rose above 0.7400 but it failed to hold and pulled back; on Friday approached the area but lost strength. Today the pair bottomed on European hours at 0.7334 but then turned to the upside and recently moved toward 0.7400 as stocks ended sharply lower in Europe and extended losses in Wall Street. The yen, the Swiss franc and the euro are being favored by risk aversion.

A consolidation on top of 0.7400 could give a strong support for the Euro to rise further versus the pound. The area is a key long term resistance level. On the opposite direction, 0.7240 and 0.7200 are the two relevant support levels to watch in the short term.
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Source:: FX Street