EUR/GBP Drops to Lows Near 0.7750, ECB Eyed

EUR/GBP Drops to Lows Near 0.7750, ECB Eyed

2 June 2016, 07:56
Roberto Jacobs

EUR/GBP Drops to Lows Near 0.7750, ECB Eyed

Having peaked near 0.7775 region earlier today, the EUR/GBP cross eases slightly and consolidates in a narrow range ahead of the ECB decision.

EUR/GBP holds above 20-DMA at 0.7733  

Currently, the EUR/GBP pair trades -0.10% lower near session lows of 0.7754, heading gradually towards 20-DMA support. The EUR/GBP cross is seen reversing from daily tops as the EUR/USD pair trims gains and now fights hard to hold above 1.12 handle in wake of easing risk-off moods.

The cross continues to remain under pressure as the cable takes on the recovery beyond 1.44 handle and remains well bid heading into the UK construction PMI report due later this session. While the main risk event for EUR/GBP this Thursday, remains the outcome of the ECB policy decision.

EUR/GBP Technical Levels   

To the upside, the next resistance is located at 0.7776 (11-day high) above which it could extend gains to 0.7830/35 (Daily R2/ May 18 High). To the downside immediate support might be located at 0.7733 (Daily Pivot/ 20-DMA) below that at 0.7700 (round number).


Share it with friends: