EUR/GBP tumbles to 4-week lows, closer to 0.8800 handle

• Drifts into negative territory for the fourth consecutive session.
• Dovish ECB decision/BOE rate hike prospects weighing.

After an initial uptick to mid-0.8800s, the EUR/GBP cross ran through some fresh offers and drifted into negative territory for the fourth consecutive session.

The cross extended its rejection slide from the key 0.9000 psychological mark and touched a 4-week low, around the 0.8815 region in the past hour. Thursday's dovish ECB decision, to reduce the size of its monthly asset purchases but extend the bond-buying program through at least September 2018, has been one of the key factors behind the shared currency's relative underperformance.

Moreover, prospects for an imminent BOE rate hike action, against the backdrop of last week's upbeat UK GDP growth figures, underpinned the British Pound and further collaborated to the pair's slide to its lowest level since Oct. 2.

Bulls now look forward to the prelim German CPI print for some immediate respite, but the key focus would remain on Wednesday's BOE monetary policy meeting.

Technical levels to watch

A follow through weakness below the 0.8800 handle could get extended towards 0.8785-80 horizontal support, which if broken could accelerate the fall towards the very important 200-day SMA support near mid-0.8700s.

On the upside, 0.8855-60 zone now seems to have emerged as immediate resistance, above which the cross could aim towards surpassing the 0.8900 handle and head towards testing 0.8930 hurdle.

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.