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EUR/GBP drops to lows near 0.7090

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The now weaker tone around the shared currency is prompting EUR/GBP to return to sub-0.71 levels ahead of the opening bell in Euroland.

    EUR/GBP focus on PMIs, ECB


    Quite interesting session ahead for the European cross today, as final Services PMIs are due in both the euro region and the UK, ahead of EMU’s Retail Sales and the critical ECB meeting, followed by President Draghi’s press conference.

    Market participants have already priced in a dovish tone from the Council at today’s meeting, although there is still room for further surprises by the central bank, leaving EUR in the centre of the scene.

    In the meantime, renewed and string selling pressure around the sterling has boosted the cross briefly above the 0.7100 handle on Wednesday, extending the rebound from November’s lows in the 0.6980 area.

    EUR/GBP important levels

    As of writing the cross is losing 0.17% at 0.7091 and a breach of 0.6985 (low Nov.17) would open the door to 0.6948 (low Aug.5) and finally 0.6934 (2015 low Jul.17). On the other hand, the initial resistance lines up at 0.7176 (38.2% Fibo of 0.7496-0.6979) followed by 0.7194 (100-day sma) and then 0.7202 (200-day sma).
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