25.01 - EUR/GBP met with fresh supply on Monday
- by George Solotarov
The EUR/GBP cross edged lower through the early European session and dropped to fresh daily lows, around the 0.8875 region in the last hour. The cross witnessed some selling on the first day of a new trading week and extended the previous session's retracement slide from the 0.8920-25 supply zone. The intraday downtick lacked any obvious fundamental catalyst and is more likely to remain limited, instead could be seen as a buying opportunity.
The UK macro data released on Friday added to worries about a slowdown in the economic activity. This comes amid reports that the new UK COVID-19 variant was perhaps more deadly than the original strain. This, in turn, might hold the GBP bulls from placing any aggressive bets and extend some support to the EUR/GBP cross.