EUR/GBP attempts recovery with all eyes on ECB Lagarde speech

EUR/GBP recovery loses steam right below 0.8600.
Weak Eurozone sentiment and dovish comments from ECB's De Guindos are weighing on the pair.
All eyes now are on ECB President Christine Lagarde's speech.

Guillermo Alcala FXStreet

The Euro has trimmed some losses during Monday’s Asian session with investors taking profits after having depreciated more than 2% in the last two weeks.

The pair however, seems to be losing upside traction during the European session, as weaker-than-expected investors’ confidence data in the Eurozone and the dovish comments by ECB’s De Guindos have acted as headwinds for the Euro.

ECB Lagarde comments will attract attention on Monday

The highlight of the day, however, will be ECB President Lagarde’s speech, at 14:00 GMT. In light of the recent decline in inflation, investors will be looking for dovish hints that might resume the pair’s downtrend.

From a technical perspective, the pair seems ready for an upside correction after reaching oversold levels on daily and intra-day charts.

On the upside, immediate resistance lies at 0.8580, which closes the path to a strong resistance area between 0.8600 and 0.8620. Supports are 0.8550 and 0.8500

EUR/GBP 4-hour chart

(This story was corrected on December 4 at 11:22 GMT to say, in the third bullet point, that the ECB President is Christine Lagarde, not Lagaarde.)

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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