EUR/GBP continues to slide post-ECB, hits 1-week lows

A quiet week for EUR/GBP with a minor retreat.
Euro remains weak pos-ECB meeting.

EUR/GBP dropped on Friday for the third day in a row. It bottomed at 0.8873, the lowest level in a week. The pair rebounded from the lows but it was holding under 0.8900, with a bearish tone.

The euro weakened after the ECB decision to keep rates and QE unchanged. Despite removing a line in the statement saying it would increase the purchase program if the outlook deteriorates, the euro drift lower after a positive initial reaction. The weakness around the currency continued over Friday. Most of the events were already priced in.

On a different position, the pound was not moved by a report mentioning, that in private, UK officials don´t expect to have a deal on Brexit by next January.

The pair is about to end the week lower. After a risky weekend with the Italian election and the German vote on the government coalition and also after the ECB meeting, the euro failed to hold to the gains of the previous week and pulled back. EUR/GBP lost so far less than 60 pips from the level it had a week ago. On a wider perspective, the pair is still trapped in a wide range between 0.9000 and 0.8750.

Levels to watch

To the upside, the immediate resistance is seen at 0.8905, followed by 0.8925 (Mar 9 high) and 0.8945. On the flip side, support could be located at 0.8730/35 (Mar 9 low), 0.8845 (Feb 19 low / Feb 27 high) and 0.8830.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.