The pound softens as a 40-year high inflation rate could threaten Britain’s economic growth. After failing to hold above 0.8420, the euro has retreated to the start of the previous bullish breakout. 0.8380 is a demand zone to see whether there is strong enough interest. Further down, 0.8340 is a critical floor to keep the single currency afloat. The RSI’s oversold condition has attracted some buying interest, and the bulls will need to lift offers around 0.8460 and 0.8490 before a sustained rebound could materialise.
