• A quiet week for EUR/GBP with a minor retreat. 
  • Euro remains weak pos-ECB meeting. 

EUR/GBP dropped on Friday for the third day in a row. It bottomed at 0.8873, the lowest level in a week. The pair rebounded from the lows but it was holding under 0.8900, with a bearish tone. 

The euro weakened after the ECB decision to keep rates and QE unchanged. Despite removing a line in the statement saying it would increase the purchase program if the outlook deteriorates, the euro drift lower after a positive initial reaction. The weakness around the currency continued over Friday. Most of the events were already priced in. 

On a different position, the pound was not moved by a report mentioning, that in private, UK officials don´t expect to have a deal on Brexit by next January. 

The pair is about to end the week lower. After a risky weekend with the Italian election and the German vote on the government coalition and also after the ECB meeting, the euro failed to hold to the gains of the previous week and pulled back. EUR/GBP lost so far less than 60 pips from the level it had a week ago. On a wider perspective, the pair is still trapped in a wide range between 0.9000 and 0.8750. 

Levels to watch 

To the upside, the immediate resistance is seen at 0.8905, followed by 0.8925 (Mar 9 high) and 0.8945. On the flip side, support could be located at 0.8730/35 (Mar 9 low), 0.8845 (Feb 19 low / Feb 27 high) and 0.8830. 

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