- The pound strengthens against the euro at the end of the month.
- EUR / GBP breaks key support, increasing negative tone.
The EUR / GBP is falling for the fourth day of the last five days with the particularity of having broken the previous lows of the month. The price fell below 0.9000 to 0.8985, the lowest level since September 8.
The cross remains in the area of the lows with the bearish tone intact, especially the longer it is affirmed below the previous October lows that are at 0.9005, a level that is now immediate resistance.
EUR / GBP weakness continued after Thursday’s meeting of the European Central Bank, which kept the policy unchanged but pointed to new announcements at the next meeting, which will be more stimulus.
Another factor that may be playing a key role on Friday is the end-of-month flows favoring the pound. The British currency these days has stopped being negatively affected by the Brexit issue.
From a technical point of view, EUR / GBP is breaking major support, which gives more weight to the short-term bearish bias. If it continues below 0.9000, the negative moment will continue to grow. The next support is at 0.8965 followed by 0.8945. If it returns above 0.9010, the downward pressures would ease, while a clear close above 0.9065, where the 20 and 55-day moving measures converse, would leave the pound weak.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
