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EUR/GBP back under pressure, drops toward 0.7000

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The euro weakened in the market and pushed EUR/GBP toward 0.7000. The pair was testing daily highs around the 0.7050 area but turned to the downside and during the US session printed a fresh daily low at 0.7012, the lowest level since last Wednesday.

    Currently is trading around 0.7020 as EUR/USD tests daily lows while GBP/USD remains around 1.5050, after moving away from the lows.

    EUR/GBP below short-term dynamic support

    The recovery was capped by 0.7050 and the recent slide pushed the price back below the 20-MA in four hours charts. Also it broke an uptrend line from last week, that was offering support in the short term.

    Below 0.7000, the decline is likely to continue toward the key support around the 0.6980 area where November lows are located, then comes 0.6930 (2015 lows). To the upside, the pair needs to break above 0.7050 to remove bearish pressure.

    From a fundamental perspective, speculations about what the European Central Bank could announce on Thursday continue to dominate the headlines. According to analysts from Rabobank the central bank will cut the deposit rate by 15bps and increase monthly asset purchases by EUR 30bn.
    For more information, read our latest forex news.
     

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