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EUR/GBP slumps to lows near 0.7780

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    EUR/GBP has quickly left behind the critical 0.7800 support on Friday, extending the pullback to fresh daily lows in the 0.7785/80 band.

    EUR/GBP weaker on GBP-strength

    The cross met increasing selling orders following a strong rebound in GBP sentiment, all in response to the BoE comments on its Quarterly Bulletin.

    In fact, the Bank of England has somewhat downplayed the inherent risks of a Chinese slowdown to the UK economy, adding legs to the sterling and accelerating the decline in the European cross.

    EUR/GBP key levels

    The European cross is now losing 0.40% at 0.7784 and a break below 0.7693 (38.2% Fibo of 0.7310-0.7931) would aim for 0.7689 (55-day sma) and finally 0.7620 (50% Fibo of 0.7310-0.7931). On the other hand, the initial hurdle aligns at 0.7913 (high Mar.17) ahead of 0.7931 (2016 high Feb.25) and then 0.8000 (psychological handle).
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