EUR/GBP hits fresh session lows near 0.7355

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The cross in the EUR/GBP halted a three-day rally and fell into the negative territory ahead of the European open, mainly in response to the fresh selling seen in the EUR/USD pair.

    EUR/GBP drops to lows just below 1h 100-SMA

    Currently, the EUR/GBP pair trades -0.10% lower at 0.7358, retreating slightly from fresh session lows struck at 0.7352 last minutes. The cross edges lower this session, facing double whammy from renewed weakness in the European currency against the USD on one hand. While a minor recovery in GBP/USD adds to the bearish pressure on the other end.

    Ahead in the session, markets are likely to track the sentiment on the European indices, especially with the UK’s FTSE re-opening after the Boxing Day holiday. While, stabilizing oil prices are likely to keep the GBP underpinned, which may have significant impact on the cross.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7385 (Dec 28 High), above which it could extend gains to 0.7393/0.7400 (Dec 23 High/ round number). To the downside immediate support might be located at 0.7343 (10--DMA) below that at 0.7294 (20-DMA).
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