EUR/GBP breaks under 0.8500 to the lowest level in 8 weeks

Pound extends weekly gains versus the euro on Thursday.
EUR/GBP next resistance at 0.8470, then focus turns to YTD lows around 0.8450.

Matías Salord FXStreet

The EUR/GBP is falling for the sixth consecutive day. On Thursday, it broke under 0.8500 and bottomed at 0.8480, the lowest level since mid-August. The euro remains under pressure versus the pound.

The euro is recovering on Thursday versus the Swiss franc but it is unable to stop the decline versus the pound. After last week's concerns regarding the fuel crisis, the improvement around the UK's economic outlook is helping the pound.

Also, the latest economic reports from the Eurozone were not positive, with negative numbers for Industrial Production in Germany. Reports suggested the European Central Bank is studying a new QE program in order to limit the potential impact of the end of the PEPP next year. The minutes of the last ECB meeting showed no surprises.

Technical factors are contributing to the decline in EUR/GBP. On Wednesday, it was unable to recover 0.8550 and now is under 0.8500. A consolidation at current levels would keep the bearish tone intact, despite oversold reading in short-term technical indicators.

The key critical support is seen at the August low at 0.8446. A weekly close above 0.8600 would be a positive development of the euro, suggesting a bottom is in place and could open the doors to more gains.

Technical levels

EUR/GBP

Overview
Today last price	0.8486
Today Daily Change	-0.0022
Today Daily Change %	-0.26
Today daily open	0.8508

Trends
Daily SMA20	0.8558
Daily SMA50	0.8548
Daily SMA100	0.8565
Daily SMA200	0.8638

Levels
Previous Daily High	0.8527
Previous Daily Low	0.8495
Previous Weekly High	0.8658
Previous Weekly Low	0.8526
Previous Monthly High	0.8658
Previous Monthly Low	0.8501
Daily Fibonacci 38.2%	0.8515
Daily Fibonacci 61.8%	0.8507
Daily Pivot Point S1	0.8493
Daily Pivot Point S2	0.8478
Daily Pivot Point S3	0.8461
Daily Pivot Point R1	0.8525
Daily Pivot Point R2	0.8542
Daily Pivot Point R3	0.8557

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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