- EUR/GBP looks for direction below 0.8590.
- Weak Eurozone data continues to fuel hopes of ECB cuts, weighing on the Euro.
- The pair is approaching a strong support zone above 0.8500
EUR/GBP trades sideways for the fifth day in a row on Friday, with the price action trapped within a range at the high 0.8500s.
The market is showing doubts, as demonstrated by the Doji candles marked on the daily charts, after a massive sell-off of more than 2% at the end of November, although without clear signs of a trend change in sight.
On Thursday, Eurozone GDP confirmed that the economy contracted in the third quarter, which, coupled with lower inflation, has fueled speculation that the ECB will be forced to cut rates in early 2024. This has kept investors away from the Euro.
EUR/GBP approaches 0.8500 support
The hourly chart shows the downtrend losing strength, with 0.8540 as support before a strong support zone between 0.8500 and 0.8520.
Looking up, the bulls should overcome the 0.8590 resistance zone, which marks the way towards the previous support-turned-resistance levels at 0.8615 and 0.8640.
Technical levels to monitor
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
