EUR/GBP: eyes a break to 0.86 the figure on extended downside

  • EUR/GBP: breaking the weekly 100 SMA, eyes on 0.8620's.
  • EUR/GBP:  BoE sentiment dominates as main theme, eyes on BoE hike.

EUR/GBP has slid down to test the 100 weekly SMA, losing the 0.87 handle. Currently, EUR/GBP is trading at 0.8661, down -0.71% on the day, having posted a daily high at 0.8730 and low at 0.8643.

EUR/GBP suffered on the EZ IP dropping by 0.8% mm in Feb compared to 0.1% expected, ("Jan data was revised to slightly “less worse ” (-0.6% M/M) than the preliminary data but the data still reflect a fairly sluggish start to the year for the Eurozone economy). For the UK, Davies came with some upbeat Brexit comments fueling the pounds bid forcing the cross to the lowest levels since June 2017.  

Brexit back in play

Davis said there was no precedent for the kind of customs deal the UK seeks with the EU (suggesting reaching a deal might not be that easy). "Davis also downplayed the notion of financial sector job losses following Brexit shortly before GS head Blankfein said his institution will concentrate more on Frankfurt and Paris. Davis’ comments appear to have helped lift the pound," as noted by analysts at Scotiabank.

EUR/GBP levels

EUR/GBP is headed towards 0.8600 on the extensions below recent support. The daily RSI hovers over bearish territory, moving deeper towards 30 and the cross remains underwater below a key rising support line on the daily sticks located a cent higher at 0.8820. However, the price action is turning bullish in the daily descent. However, a close below 0.8667 would open eyes towards the 78.6% retracement at 0.8527 (move up from the 2017 low). Bulls need to get above 0.8800.

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.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.2050 amid upbeat EZ PMIs, USD decline

EUR/USD is trading above 1.2050 after upbeat Eurozone Preliminary PMIs. The US dollar remains heavily offered across the board amid a mixed market mood, in the wake of Biden's plan for a tax hike. US PMIs awaited. 


GBP/USD holds gains below 1.3900 amid upbeat UK data

GBP/USD is consolidating gains below 1.3900, as the US dollar resumes decline after Biden's tax hike plan fuelled rally fades. The UK Retail Sales and PMIs beat expectations, offering support to the pound. 


Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD eases from tops, downside remains cushioned

Gold struggled to capitalize on its intraday positive move to the $1,790 region. A modest bounce in the equity markets, US bond yields exerted some pressure. The prevalent USD selling bias should help limit the downside for the commodity.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more