EUR/GBP reverses and rises above 0.8550

After a dip to 0.8490, EUR/GBP reversed sharply and broke above 0.8550. The pair is up for the second trading day in a row, at 5-day highs. 

Earlier price found resistance at 0.8550 and turned to the downside. It bottomed at 0.8489 and then, amid a decline of the US dollar in the market, bounced to the upside. While most currencies rebounded versus the greenback, the pound held near daily lows. GBP/USD remained below 1.2500 while EUR/USD climbed from 1.0620 toward 1.0700. 

Recently EUR/GBP reached 0.8578 and it was trading at 0.8565, up 45 pips from Friday’s closing price. 

Technical levels

The pair has risen above the 0.8550 relevant resistance, that now could offer immediate support. A break lower, could remove strength out of the euro. 

To the upside, resistance levels might be located at 0.8575/80 (daily high), 0.8610 (Jan 19 low) and 0.8645 (Jan 11 low). On the opposite direction, support could be seen at 0.8550, 0.8490 (daily low) and 0.8465 (Jan 27 low).