EUR/GBP finds support above 0.8470

The decline of the EUR/GBP pair found support on Wednesday around the 0.8470/75 area and now is attempting to hold above 0.8500.

During the European session, a stronger pound across the board pushed the pair to the downside. It bottomed at 0.8472, the lowest level in three weeks. Afterwards, the pair tested daily lows several times but it failed to break lower.

The euro recovered to 0.8515 but it faced difficulties holding on top of 0.8500. Currently is hovering around 0.8502/04, 25 pips below  yesterday’s closing price. EUR/GBP continues to move with a corrective bias, retreating after hitting multi-year highs above 0.8700 two weeks ago.

Technical levels

To the downside, support levels might be located at 0.8470/75 (daily low), 0.8450 (Jul 28 high) and 0.8420 (Jul 22 high). On the opposite direction, resistance could be seen at 0.8515 (American session high), 0.8525 (daily high) and 0.8550 (Aug 29 & 30 high).