The Euro stays weak versus the Pound.

The Euro has not been able to gain ground versus the main currencies after some rumors were spread around of a possible ECB intervention on the single currency to make the Euro weaken, but the currency remains stubbornly strong and it is not letting the inflation in the Euro Zone rise. This is why we have seen that the Euro has been trading sideways for today. The Euro versus the dollar stays oscillating a little bit above the 1.3800 level without a clear direction.

The Euro versus the Pound has reached an important support at the 0.8200 level where it is trying to stall its decline at the moment as shown on the daily chart below of the EUR/GBP. From this point on we may see a retracement to the upside, but we must keep in mind that the bearish trend stays intact; therefore, there could be a breakout to the downside a possible visit to the 0.8160 level from where there is a higher probability of a bounce to the upside.