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EUR/GBP drops further to fresh 2-month lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/GBP is testing the 0.7100 area as euro continued its decline during the American session and following Mario Draghi speech where he reaffirmed that at the December European Central Bank meeting the degree of accommodation will be re-examined.

    The pair turned to the downside during the European session but found support at 0.7115. On American hours broke below and recently bottomed at 0.7099, hitting the lowest level since August 20.

    EUR/GBP technical outlook

    The pair continues to move with a clear bearish bias in the short term, as it continues to move lower form 0.7495 (Oct 13 high) and is about to post the lowest close in two months. To the downside the next relevant support thigh lie at 0.7050 (May lows) ahead of 0.6935 (2015 lows).

    In order to remove the bearish pressure in the short term the euro needs to rise above 0.7140/50 (downtrend line from Oct highs) and on a wider perspective a consolidation on top of 0.7250 could give momentum again to the euro for a rally toward 0.7500.
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