- Euro is weakened after the ECB meeting and the Lagarde conference.
- EUR / GBP breaks key support and returns below the 20-day average.
EUR / GBP is falling significantly on Thursday, following the meeting of the Governing Board of the European Central Bank (ECB). The cross fell to 0.8539, reaching the lowest level since August 19.
The euro remains in the minimum zone against the pound, weakened not only by the decision and the future guidelines of the ECB, but also by technical factors. The break of a short-term bullish line, plus that of the horizontal support around 0.8560, gave more power to the fall.
EUR / GBP is back below the 20-day moving average for the first time since mid-August. In case of extending the fall, the next support is located at 0.8530, followed by 0.8500. To the upside, a recovery of 0.8565 would ease downward pressures.
The underlying message from the ECB did not change significantly beyond the reduction in the pace of PEPP purchases in the fourth quarter. The market was possibly discounting a somewhat harsher or less soft message, which was ultimately not delivered and pushed the euro down.
Technical levels
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