FXStreet (Edinburgh) – The knee-jerk in the single currency is allowing EUR/GBP to challenge daily lows in sub-0.7100 levels on Wednesday.
EUR/GBP near 4-week troughs
The European cross keeps navigating the area of multi-week lows posted on Tuesday following the sharp sell off in the single currency. While the solid performance of the sterling continues to cap the upside, the cross will look to the German IFO and the Eurogroup meeting due later as the main catalysts for today’s price action.
In the meantime, the pound remains well supported in response to better-than-expected results in the UK economy as of late and the hawkish stance of the BoE seen in its last minutes.
EUR/GBP key levels
At the moment the cross is losing 0.07% at 0.7097 facing the next support at 0.7080 (low Jun.23) followed by 0.7057 (low May 27) and finally 0.7000 (psychological level). On the other hand, a breakout of 0.7178 (high Jun.23) would expose 0.7194 (10-d MA) and then 0.7200 (psychological level).
(Market News Provided by FXstreet)