EUR/GBP halts a 2-day rally, slips below 1h 50-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 25, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/GBP cross faced rejection near Tuesday’s high and drifted sharply lower post-European open, with the fall triggered by renewed EUR weakness.

    EUR/GBP falls sharply from weekly highs near 0.7080

    Currently, the EUR/GBP pair drops -0.21% to fresh session lows of 0.7041, breaking below hourly 50-SMA at 0.7042. The cross witnessed heavy selling in last hours after the EUR/USD pair was sold-into the broad based US dollar rebound.

    While the pound edges higher versus its European counterpart backed by upbeat UK mortgage approvals data (45,437 Vs. 44,825 Sep). While the broad GBP resilience, despite the USD comeback also weighed on EUR/GBP.

    Markets now await the Autumn Forecasts statement from the UK ahead of a swarm of US economic news for further momentum on the cross.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7080 (Daily high), above which it could extend gains to 0.7300. To the downside immediate support might be located at 0.7000 (round number) below that at 0.6989 (Nov 23 Low).
    For more information, read our latest forex news.

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