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EUR/GBP slumps to lows near 0.7820

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The solid performance of the sterling has dragged EUR/GBP to test session lows in the 0.7825/20 band.

    EUR/GBP firmer post-BoE

    GBP continues to outperform its risk-associated peers following the BoE meeting, prompting the European cross to give away around a cent since daily highs above the 0.7900 mark.

    Expectations of a dovish BoE did not materialize today, adding to the current GBP-buying and thus sending the cross back to the low-0.7800s, all against the backdrop of a generalized risk-on sentiment following the FOMC meeting on Wednesday.

    EUR/GBP key levels

    The European cross is now losing 0.51% at 0.7829 and a break below 0.7801 (20-day sma) would aim for 0.7693 (38.2% Fibo of 0.7310-0.7931) and then 0.7683 (55-day sma). On the other hand, the immediate hurdle lines up at 0.7914 (high Mar.17) ahead of 0.7931 (2016 high Feb.25) and then 0.8000 (psychological handle).
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