EUR/GBP drops further and hits 1-week lows under 0.8950

The EUR/GBP rose earlier today to the key 0.9060 resistance area but then reversed sharply, falling more than a hundred pips. It recently printed a fresh 3-day low at 0.8947. It remains under intense pressure testing a critical support area. 

The move lower took place amid a stronger pound on European hours on the back of the latest Brexit rumors and more recently by a slide of the euro across the board. EUR/USD fell below 1.1500 and tumbled to 1.1457 in a few minutes while EUR/CHF erased most of yesterday’s gains and dropped more 50 pips from the high, pulling back under 1.1300. 

EUR/GBP Levels to watch 

To the downside, the immediate support is seen at 0.8940/50. It is a crucial support level and the lower bound of the trading range that has been in place since early December. A consolidation below would signal further losses and a test of 0.8900. 

If the euro manages to hold on top of 0.8940/50, it could continue to trade in the consolidation range, turning slowly to the upside. Resistance levels from current price are seen at 0.8960, followed by 0.8985 and then 0.9005. The critical level continues to be 0.9060, tested earlier today. A daily close significantly on top, would clear the way to more gains in the medium term.