EUR/GBP struggling near weekly lows ahead of EZ CPI and UK GDP
|The EUR/GBP cross well-offered for the third consecutive session and is currently placed at fresh weekly lows near 0.8415 region.
Spot extended its reversal move from two-week highs, touched earlier this week, and has now filled majority of its weekly bullish gap led by Emmanuel Macron's victory in the first round of the French Presidential election.
With markets looking beyond the initial euphoric reaction to election results, cautious comments on EZ's inflation and economic outlook by the ECB President Mario Draghi, during the post meeting press conference on Thursday, weighed on the shared currency.
• ECB Review: Draghi, a bull in dove’s clothing – TDS
Meanwhile, persistent positive sentiment surrounding the British Pound, against the backdrop of a possible 'soft Brexit' scenario following the UK PM Theresa May's announcement for snap election, further collaborated to the heavily offered tone surrounding the cross.
Moving ahead, investors now look forward to important macro releases - the advanced Euro-zone inflation figures and prelim UK GDP growth numbers, and determine the next leg of directional move for the cross.
• UK: GDP to decelerate from 0.7% q/q in Q4 to only 0.4% q/q in Q1 - TDS
Technical levels to watch
Weakness below 0.8415 level could get extended towards 0.8385-80 support, which if broken is likely to accelerate the slide further towards 0.8355-50 strong horizontal support. On the upside, any recovery attempts beyond 0.8450-55 zone might now confront strong hurdle near the key 0.8500 psychological mark, above which a bout of short-covering could lift the cross beyond two-week highs resistance near 0.8530 level towards its next barrier near the 0.8570 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.