EUR / GBP rises strongly for the second day and returns to 0.9050, after finding support at 0.9000

• Bank of England increases QE and British government extends aid to companies for wages.
• Euro gains momentum with the EUR / USD rally.

The EUR / GBP is rising strongly for the second day in a row, although it has moved away from the highs in recent hours. The price climbed to 0.9068, the highest level in a week after falling to 0.9000 and is trading in the 0.9050 area.

The advance comes before a strong rally in the EUR / USD and after the Bank of England announced the decision to increase the purchase program, by an amount higher than expected. In turn, in the United Kingdom and to alleviate the negative effects of the coronavirus and the new confinement measures, the Minister of Finance announced the extension of the employment assistance program until March.

Bearish bias threatened

The strong rebound of the EUR / GBP from the low in almost two months at the 0.8950 zone, has led the price to test levels above the 20, 50 and 100 day moving averages. Although it has not yet been confirmed above. The last of these is at 0.9060 and close to that level, around 0.9070 / 80 is passing a downtrend line. This implies that a break above 0.9080 would remove the bias to the downside, favoring a bullish extension.