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EUR/GBP drops further and hits 1-month lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - EUR/GBP is falling sharply on Thursday having the worst daily performance since May. Initially a better-than-expected retail sales report in the United Kingdom boosted the pound and then expectations of a rate cut/or an extension of the purchase program by the European Central Bank at the next meeting pushed the euro sharply lower across the board.

    After Draghi’s press conference the pair found support at 0.7240 but recently broke below and bottomed at 0.7228, hitting the lowest level in a month. It was trading at 0.7235/38, still under pressure.

    EUR/USD remains near 1.1150, 160 pips below the level it had before the ECB decision and the press conference. The decline of the pair weakened GBP/USD that is trading around 1.5400, almost a hundred pips below daily highs.

    EUR/GBP eyes 0.7200

    The decline of EUR/GBP brought the price closer to the 0.7200 area that capped the decline during August; before it could find support at 0.7225 (July 8, 9 &10 high). On the opposite direction resistance now could be seen at 0.7275, 0.7300/05 (Oct 5 low) and 0.7360.
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