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22 Jan 2016
EUR/GBP drops to one-week lows
FXStreet (Mumbai) - Profit taking on the GBP shorts and fresh sell-off in the common currency pushed the EUR/GBP cross to a one-week low of 0.7545 levels ahead of the weekend.
Trades below 23.6% Fibo levels
The cross is currently trading below 0.7573; which is the 23.6% fibo retracement of the rally from the November low of 0.6981 to January high of 0.7755. EUR has come under selling pressure on prospects of more easing in March, while the GBP shorts are being squared off after the UK public sector net borrowing figure surprised on the positive side.
Ahead in the day, the cross could track the action in the US equities. Risk-on could weigh over Euro and may strengthen the British Pound.
EUR/GBP Technical Levels
The pair currently trades around 0.7555. The immediate support is seen at 0.7493 (Oct 10 high), under which the pair could drop to 0.75 levels. On the other hand, a break above 0.7573 (23.6% of 0.691-0.7755) could see the pair revisit 0.76 handle.
Trades below 23.6% Fibo levels
The cross is currently trading below 0.7573; which is the 23.6% fibo retracement of the rally from the November low of 0.6981 to January high of 0.7755. EUR has come under selling pressure on prospects of more easing in March, while the GBP shorts are being squared off after the UK public sector net borrowing figure surprised on the positive side.
Ahead in the day, the cross could track the action in the US equities. Risk-on could weigh over Euro and may strengthen the British Pound.
EUR/GBP Technical Levels
The pair currently trades around 0.7555. The immediate support is seen at 0.7493 (Oct 10 high), under which the pair could drop to 0.75 levels. On the other hand, a break above 0.7573 (23.6% of 0.691-0.7755) could see the pair revisit 0.76 handle.