EUR/GBP Drops to 1-Week Lows
EUR/GBP
dropped further during the American session and bottomed at 0.7845, the
lowest level since May 3. The pound is among the top performers, lead
by GBP/USD that hit fresh highs above 1.4500.
The pair broke below the lows that it reached after events from the Bank
of England, that included the decision, minutes and the Quarterly
Inflation Report. Below 0.7860 it accelerated the downside. So far the
area around 0.7850 capped the decline and currently it trades at
0.7860/65, down 40 pips from yesterday’s closing price.
EUR/GBP testing important support
So far the pair has been unable to consolidate below 0.7860/65, that has
become an important short-term support (May 5 & 11 lows); if it
holds below the next support to consider could be seen around 0.7800 -
0.7810.
To the upside, the level to watch is the 0.7915/20 zone, a significant
close above could give further momentum to the euro, for a rally toward
0.8000.
