Thursday, November 12, 2015

EUR/GBP slumps towards 0.7040

FXStreet (Edinburgh) - The selling interest around the euro is now gathering further traction, rapidly sending EUR/GBP to test fresh lows in the mid-0.70s.

EUR/GBP weaker on Draghi

The European cross is trading in the area of 3-month lows around 0.7040/30, levels last seen in mid-August, following the dovish comments by President M.Draghi at his speech before the European Parliament.

Draghi has reiterated the Council will re-examine the current monetary policy stance in the region at its December meeting, while he stressed at the same time that the central bank will use all available instruments to achieve its inflation target.

EUR/GBP relevant levels

As of writing the cross is losing 0.15% at 0.7050 facing the initial support at 0.7038 (low Nov.5) followed by 0.7000 (psychological level) and finally 0.6934 (2015 low Jul.17). On the other hand, a break above 0.7129 (downtrend from 0.7496) would expose 0.7146 (23.6% Fibo of 0.7496-0.7038) and then 0.7204 (100-day sma).
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