• Dovish ECB shifts prompted some aggressive selling around the shared currency.
• A downward revision of the ECB’s growth/inflation projections adds to the selling bias.
• Brexit uncertainties continue to weigh on the British Pound and helped limit losses.
The EUR/GBP cross extended its post-EC retracement slide from an intraday high level of 0.8625 and refreshed session lows during the post-meeting press conference.
The shared currency weakened across the board after the ECB surprised market participants by announcing a new series of targeted longer-term loans – TLTROs and changed its interest rate guidance, now sees rates to remain on hold at least through 2019.
Adding to this, the ECB also lowered its economic growth forecast for 2019/2020 and inflation projections through 2021, which exerted some additional downward pressure on the common currency and collaborated to the pair's intraday slide of around 50-pips.
The downside, however, remained cushioned on the back of the prevalent selling bias surrounding the British Pound amid reemerging Brexit uncertainties and growing pessimism over the possibilities of a breakthrough in Brexit talks this week.
Meanwhile, the cross remains well within a familiar trading range held since the beginning of this week, clearly indicating indecision among traders. Hence, it would be prudent to wait for a sustained break in either direction before positioning for the near-term trajectory.
Technical levels to watch
EUR/GBP
Overview:
Today Last Price: 0.8584
Today Daily change %: 0.00%
Today Daily Open: 0.8584
Trends:
Daily SMA20: 0.8685
Daily SMA50: 0.879
Daily SMA100: 0.8836
Daily SMA200: 0.8857
Levels:
Previous Daily High: 0.862
Previous Daily Low: 0.8577
Previous Weekly High: 0.8702
Previous Weekly Low: 0.8529
Previous Monthly High: 0.8842
Previous Monthly Low: 0.8529
Daily Fibonacci 38.2%: 0.8604
Daily Fibonacci 61.8%: 0.8594
Daily Pivot Point S1: 0.8567
Daily Pivot Point S2: 0.855
Daily Pivot Point S3: 0.8524
Daily Pivot Point R1: 0.8611
Daily Pivot Point R2: 0.8637
Daily Pivot Point R3: 0.8654
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