- Libra hit by risk aversion and Bailey’s comments.
- The euro shows resistance against the strength of the dollar, against the Swiss franc.
- EUR/GBP is headed for the highest close since March 17.
The EUR/GBP rose further after the start of the US session and reached a new weekly high at 0.8396. The euro remains near the top of the range with the positive tone intact.
Pound under pressure as GBP/USD falls
The pound is trading lower and extended losses after comments from Bank of England Governor Andrew Bailey. He spoke of signs of slowing growth and warned of the impact of swings in commodity prices.
More recently, European markets pared their gains and US stocks opened mixed after being positive for most of the pre-market session. The deterioration in investor confidence affected the pound sterling, which fell further.
Furthermore, GBP/USD’s drop below 1.3100 added to the negative tone of the pound across markets, pushing EUR/GBP closer to 0.8400. The next key level could be seen at 0.8415, a daily close clearly above it would expose the March high at 0.8465.
The area around the 20-day SMA at 0.8350 has become relevant support. A drop below would nullify the current positive bias in EUR/GBP. Next support comes in at 0.8320, followed by last week’s low at 0.8293.
Technical levels
EUR/GBP
| Panorama | |
|---|---|
| Last Price Today | 0.8382 |
| Today’s Daily Change | 0.0051 |
| Today’s Daily Change % | 0.61 |
| Today’s Daily Opening | 0.8331 |
| Trends | |
|---|---|
| 20 Daily SMA | 0.8352 |
| 50 Daily SMA | 0.8362 |
| 100 Daily SMA | 0.8408 |
| 200 Daily SMA | 0.8472 |
| levels | |
|---|---|
| Previous Daily High | 0.837 |
| Previous Daily Minimum | 0.8324 |
| Previous Maximum Weekly | 0.8416 |
| Previous Weekly Minimum | 0.8296 |
| Monthly Prior Maximum | 0.8478 |
| Previous Monthly Minimum | 0.8285 |
| Daily Fibonacci 38.2% | 0.8342 |
| Daily Fibonacci 61.8% | 0.8352 |
| Daily Pivot Point S1 | 0.8314 |
| Daily Pivot Point S2 | 0.8296 |
| Daily Pivot Point S3 | 0.8268 |
| Daily Pivot Point R1 | 0.8359 |
| Daily Pivot Point R2 | 0.8387 |
| Daily Pivot Point R3 | 0.8405 |
Source: Fx Street
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