EUR/GBP extends slide, hits fresh weekly lows under 0.8600
- Pound extends gains versus euro, remains among top performers
- EUR/GBP heads to the lowest close since April 6.
The EUR/GBP is having the biggest daily loss in months on Monday as the pound rises sharply across the board following elections in Scotland during the weekend.
Lower odds of a new independence referendum in Scotland after the elections triggered a rally of the pound. After the risk event, traders turn their attention to what the Bank of England announced last week. The pound dropped last week and on Monday is among the top performers.
On Friday, EUR/GBP ended looking at the 0.8700 area. It failed to break it but remains near. After the weekly opening, it started to decline and accelerated on European hours. Recently it bottomed at 0.85952, the lowest level since April 19.
As of writing it trades at 0.8605. the area around 0.8600 is a strong support and a close below would suggest more losses ahead. The next relevant support area is seen at 0.8545/50.
Technical levels
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.
