EUR/GBP Slides Further to a Fresh 6-Week Low
pair's bounce on Monday was rejected at 0.7800 mark and the pair
subsequently resumed its near-term weakness to test a 6-week low level
of 0.7743 on Tuesday.
After peaking out earlier during the month, the pair has been falling relentlessly primarily led by dovish ECB. The UK Pound had also shown resilience to fall, even on the back of weak economic data.
Technical levels to watch
Rejection from immediate resistance near 0.7800 round figure mark and a subsequent break below 0.7750 level (recent lows) might now trigger a fresh leg of weakness, immediately towards 0.7735 intermediate support before the pair eventually drops to its next major support near 0.7715 level (March daily closing low level support).
On the flip side, any attempts of recovery from lower levels might now face immediate resistance near 0.7775-80 zone, which if conquered could be headed towards 0.7800-0.7815 strong resistance. Only a sustained strength above 0.7800 mark handle would bring 0.7850 resistance back in action.