The EUR to GBP jumped to six-month highs after an early dip to 0.8978 as investors worry that the UK government is not handling the coronavirus outbreak properly. The herd immunity idea that introduced by UK government assumes that if most of the population is infected and become immune, would provide protection for those who are not immune, and asks for isolation of the people over 70 years old.
Euro is attracting more bids capitalizing the Feds emergency cut by 100 basis points yesterday that reduce the benchmark interest rates to 0.0% – 0.25%.
Last week, the Bank of England, cut the rates by 50 basis points to 0.25% as central banks around the world trying to combat the coronavirus outbreak impact.
EURGBP is 0.65% higher at 0.9059, amid high volatility as the pair breaks to six-month highs. The technical picture is bullish for the pair as it makes higher highs and higher lows for sixth consecutive sessions.
On the upside, immediate resistance area stands at 0.9132 the daily high. A convincingly break above might test the next resistance at 0.9152 the high from September 3, 2019. The next resistance zone will be met at 0.9185 the high from August 20, 2019.
On the other hand, first support for the EURGBP stands at 0.8979 the daily low. Next support for EURGBP will be met at 0.8844 the low from Friday’s trading session. More bids might emerge 0.8742 the 200-day moving average.