EUR/GBP Slumps to 0.7900, GBP Soars

EUR/GBP Slumps to 0.7900, GBP Soars

24 March 2016, 13:16
Roberto Jacobs

EUR/GBP Slumps to 0.7900, GBP Soars

A strong rebound in the sterling is now prompting EUR/GBP to quickly retrace the earlier advance and return to the 0.7900 neighbourhood.

EUR/GBP down from fresh YTD peaks

The European cross has rapidly surrendered more than 50 pips, falling from fresh 2016 highs near 0.7950 to briefly dip to sub-0.7900 levels. In addition, better-than-expected Retail Sales in the UK during February have also lent support to the British pound, collaborating with the downside.

There are no further scheduled releases in the euro area and the UK economy today, leaving all the attention to the US docket and the risk appetite trends.

EUR/GBP key levels

The European cross is now losing 0.21% at 0.7902 and a breakdown of 0.7805 (20-day sma) would expose 0.7726 (55-day sma) and then 0.7650 (post-ECB low Mar.10). On the flip side, the next up barrier aligns at 0.7948 (2016 high Mar.24) followed by 0.8007 (monthly high Dec.16 2014) and finally 0.8041 (monthly high Nov.19 2014).

(Market News Provided by FXstreet)

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