5 Sep 2013
EUR/GBP breaks down the 0.8425 support and trades at almost 4-month lows
FXstreet.com (San Francisco) - The Euro is currently trading lower against the Sterling after the both, ECB and BoE, interest rate decisions. The EUR/GBP fell around 60 pips in the last two hours from 0.8465 to test May 5th lows at 0.8405.
Euro declined to fresh daily lows against its major competitors, erasing ADP gains as Draghi sounded pretty dovish. Even though he said the ECB has upgraded projection for 2013 GDP for a contraction of 0.4% versus a June forecast for the economy to shrink 0.6%, he reiterated risks remain skewed to the downside.
ECB President also repeated interest rates should remain at present or lower levels "for an extended period of time" and that the bank stands ready to act if needed.
EUR/GBP levels
Currently, the EUR/GBP os trading at 0.8415, 0.44% negative on the day. The short term perspective is slightly bearish according to the FXstreet.com trend index in the 15-minute chart. Indicators such as MACD, CCI an Momentum are pointing to the south while the Stochastic is bullish.
Below the 0.8405, next supports are at 0.8400, 0.8390 and 0.8350. On the upside, resistances are at 0.8425, 0.8450 and 0.8465.
Euro declined to fresh daily lows against its major competitors, erasing ADP gains as Draghi sounded pretty dovish. Even though he said the ECB has upgraded projection for 2013 GDP for a contraction of 0.4% versus a June forecast for the economy to shrink 0.6%, he reiterated risks remain skewed to the downside.
ECB President also repeated interest rates should remain at present or lower levels "for an extended period of time" and that the bank stands ready to act if needed.
EUR/GBP levels
Currently, the EUR/GBP os trading at 0.8415, 0.44% negative on the day. The short term perspective is slightly bearish according to the FXstreet.com trend index in the 15-minute chart. Indicators such as MACD, CCI an Momentum are pointing to the south while the Stochastic is bullish.
Below the 0.8405, next supports are at 0.8400, 0.8390 and 0.8350. On the upside, resistances are at 0.8425, 0.8450 and 0.8465.