EUR/GBP Drops to Fresh 3-Week Low Ahead of ECB
The EUR/GBP
pair gave up all of its bounce recorded post weak UK retail sale data
and has dropped to a fresh three-week low, trading with a weakness of
over 0.20% on EUR weakness ahead of the important ECB monetary policy decision announcement.
UK
monthly retail sales data for March recorded second consecutive month
of decline with a sharp down-tick of -1.3% as compared to -0.5% in
February.
EUR/GBP seems to extend the weakness
On
H4, the pair has been trending lower within a short-term descending
trend-channel and now dropped below yesterday's low, making it
vulnerable to continue drifting lower post ECB announcement. From
current levels, the pair seems to drop towards testing the descending
trend-channel support near 0.7820 level.
Meanwhile, any attempts
of recovery from lower levels might now confront immediate strong
resistance near 0.7875-85 area. Only a strong momentum beyond this
immediate resistance, boosting the pair beyond 0.7900 mark, has the
potential to lift it towards the descending trend-channel resistance,
currently near 0.7938-40 area.
