Friday, November 20, 2015

EUR/GBP drops below 0.7 after Draghi speech

FXStreet (Mumbai) - The EUR was offered across the board on Draghi’s dovish comments, pushing the EUR/GBP pair below 0.70 handle.

Rejected at hourly 100-MA

The cross was having a tough time rising above its hourly 100-MA before Draghi’s dovish comments hit the wires and led to a sell-off to a low of 0.6984 levels. Draghi stressed that the bank stands ready to act in order to address the low inflation problem.

Ahead in the day, the EUR traders would also watch out for comments from ECB Vice-President Constancio, Weidmann and Benoît Cœuré.

EUR/GBP Technical Levels

At 0.6990, the immediate resistance is seen at 0.7006 (hourly 50-MA) and 0.7014 (hourly 100-MA), above which the pair could rise to 0.7045 (hourly 200-MA). On the other side, failure to rise back above 0.70 could push the cross lower to 0.6951 (Aug 5 low).
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