EUR/GBP slides to fresh session lows, further below mid-0.8600s


  • A modest USD rebound exerted pressure on the euro and prompted some selling around EUR/GBP.
  • The upbeat UK economic outlook underpinned the pound and further contributed to the selling bias.

The EUR/GBP cross maintained its offered tone through the mid-European session and dropped to fresh daily lows, around 0.8630 region in the last hour.

The cross witnessed some selling during the second half of the trading action on Wednesday and moved further away from over two-week tops, around the 0.8670 region touched in the previous session. The shared currency's relative underperformance lacked any obvious fundamental catalyst and could be solely attributed to a modest US dollar rebound from multi-month lows.

On the other hand, the British pound remained well supported by the optimistic outlook for the UK economic recovery amid the gradual easing of lockdown measures. The impressive pace of coronavirus vaccinations, along with the effectiveness of COVID-19 vaccines against the Indian variant, bodes well with the UK government's plan to end restrictions fully on June 21.

The combination of factors exerted some downward pressure on the EUR/GBP cross, though fears over the long-term impact of Brexit might help limit any further losses. This makes it prudent to wait for some strong follow-through selling before confirming that the recent positive move has run out of steam and positioning for any meaningful slide amid absent relevant economic releases.

Nevertheless, the EUR/GBP cross, for now, seems to have snapped two consecutive days of the winning streak and erased a major part of the overnight gains. The 0.8625-20 region might act as immediate support ahead of the 0.8600 mark, which if broken decisively might prompt some technical selling and accelerate the slide towards monthly swing lows, around the 0.8560 region.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8638
Today Daily Change -0.0018
Today Daily Change % -0.21
Today daily open 0.8656
 
Trends
Daily SMA20 0.8638
Daily SMA50 0.8624
Daily SMA100 0.8692
Daily SMA200 0.8865
 
Levels
Previous Daily High 0.8672
Previous Daily Low 0.8619
Previous Weekly High 0.8643
Previous Weekly Low 0.8582
Previous Monthly High 0.872
Previous Monthly Low 0.8472
Daily Fibonacci 38.2% 0.8652
Daily Fibonacci 61.8% 0.8639
Daily Pivot Point S1 0.8626
Daily Pivot Point S2 0.8596
Daily Pivot Point S3 0.8574
Daily Pivot Point R1 0.8679
Daily Pivot Point R2 0.8702
Daily Pivot Point R3 0.8732

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: On the way to 1.1920 resistance confluence

EUR/USD bulls brace for breaking the immediate trading range surrounding 1.1900, also refresh the highest levels since July 06, during early Friday morning in Asia. The major currency pair stays positive for the fifth day in a row.

EUR/USD News

GBP/USD: Bulls again keep 1.4010 on radar

GBP/USD seesaws around 1.3970 amid early Asian session trading on Friday, after renewing the multi-day tops the previous day. The cable pair rose past 100-DMA for the first time since June 23 on Thursday amid stronger RSI and Momentum lines.

GBP/USD News

EUR/USD: On the way to 1.1920 resistance confluence

EUR/USD bulls brace for breaking the immediate trading range surrounding 1.1900, also refresh the highest levels since July 06, during early Friday morning in Asia. The major currency pair stays positive for the fifth day in a row.

EUR/USD News

Litecoin price redefines momentum, as LTC approaches an impressive milestone

Litecoin price confirms breakout from the governing falling wedge pattern on July 25, marking a turning point for the altcoin and introducing new technical challenges.

Read more

US Second Quarter GDP and Inflation: Economics and politics

The US economy pulled up short of expectations in the second quarter, expanding at a 6.5% annualized rate despite government largesse of $1.9 trillion that began in March. Economists had predicted a 8.5% growth rate. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures