EUR/GBP slips below 0.8800 mark, fresh 3-week lows

Persistent selling around the Euro exerted some fresh pressure on the EUR/GBP cross.
The British pound seemed rather unaffected by a big jump in the UK coronavirus deaths.
The technical set-up favours bearish traders and supports prospects for a further decline.

Haresh Menghani FXStreet

The EUR/GBP cross to fresh three-week lows in the last hour, with bears now looking to extend the slide further below the 0.8800 round-figure mark.

Following the previous session's good two-way price action, the cross met with some fresh supply on Wednesday and extended its recent sharp pullback from the 0.9500 psychological mark, or over 11-year tops set on March 19.

The downtick was sponsored by the prevailing selling bias surrounding the shared currency, all against the backdrop of mounting fears over the economic fallout from the coronavirus pandemic and the reemergence of the disinflationary trend.

On the other hand, the British pound seemed rather unaffected by the fact that Fitch lowered its UK long-term issuer default ratings to AA- from AA and a big jump in the UK coronavirus deaths, rising to 2352 on Wednesday from 1789 yesterday.

Given last week's sustained break through an important horizontal support near the key 0.90 psychological mark, the pair's ongoing slide to the lowest level since March 12 could further be attributed to some follow-through technical selling.

A subsequent weakness below the 0.8800 mark will reinforce the near-term bearish bias and set the stage for an extension of the pair's depreciating move, possibly towards testing the next major support near the 0.8720-15 horizontal zone.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8816
Today Daily Change	-0.0068
Today Daily Change %	-0.77
Today daily open	0.8884

Trends
Daily SMA20	0.8983
Daily SMA50	0.866
Daily SMA100	0.8586
Daily SMA200	0.8754

Levels
Previous Daily High	0.8973
Previous Daily Low	0.8812
Previous Weekly High	0.9388
Previous Weekly Low	0.8905
Previous Monthly High	0.95
Previous Monthly Low	0.8594
Daily Fibonacci 38.2%	0.8873
Daily Fibonacci 61.8%	0.8911
Daily Pivot Point S1	0.8807
Daily Pivot Point S2	0.8729
Daily Pivot Point S3	0.8645
Daily Pivot Point R1	0.8968
Daily Pivot Point R2	0.9051
Daily Pivot Point R3	0.9129

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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