EUR/GBP slide to fresh session low near 0.8630 level

Haresh Menghani FXStreet

After a weekly bullish gap, the EUR/GBP cross ran through fresh offers and turned lower for fourth session in the previous five.

Currently trading just below mid-0.8600s, a strong bid tone surrounding the British Pound failed to assist the cross to build on weekly bullish gap. Moreover, a fresh bout of short-covering around the GBP/USD major further collaborated towards accelerating the pair's downslide from three-day tops.

Meanwhile, the release of better-than-expected German IFO Business Climate index for March remained supportive of a strong bid tone surrounding the EUR/USD major, which might extend some immediate support and limite further depreciating move.

With the Brexit journey to officially begin on Wednesday, any news coming out of the UK PM Theresa May meeting with Scottish First Minister Nicola Sturgeon would influence the British Pound and infuse volatility across GBP pairs.

Technical levels to watch

Bears would be eyeing for weakness below 0.8640 level (session low), the cross is likely to accelerate the slide towards 0.8615-10 strong support before eventually dropping to 0.8575 horizontal support.

On the upside, momentum above session peak resistance near 0.8675 level now seems to lift the cross beyond the 0.8700 handle towards its next hurdle near 0.8730-35 zone.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.8555

50% Bullish
50% Bearish
0% Sideways

Bias Neutral

1 Month

Avg Forecast 0.8685

38% Bullish
50% Bearish
12% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.8610

45% Bullish
33% Bearish
22% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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