EUR/GBP retreats further toward 0.7600

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/GBP dropped further during the American session and reached a fresh 2-day low at 0.7616. The pair then bounced modestly to the upside and it was trading at 0.7625/30, down 0.65% for the day.

    The pound is rising for the second day in a row against the euro as it continues to recover after hitting the lowest level in a year. EUR/GBP was rejected from level on top of 0.7700 and is making a strong reversal.

    A volatile day for EUR and GBP

    During the first half of the day, pound weakness drove EUR/GBP toward yesterday’s highs as GBP/USD dropped below 1.4100 (6-year low). Then after the European Central Bank meeting, Mario Draghi signaled that the institution could announce more stimulus measures in March and triggered a sharp decline of the euro in the market and a reversal in EUR/GBP.

    The pair dropped more than a hundred pips from the highs. The area around 0.7750 continues to be a strong resistance while the 0.7600 support zone could be tested in the coming hours.
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