- Euro is weakened after ECB meeting.
- The pound is unaffected by UK data.
- EUR / GBP falls for the third day in a row, trading below support at 0.8530.
EUR / GBP remains weak and just hit three-week lows at 0.8521. The euro is having the worst week in a month against the pound and is losing key levels.
Post ECB weakness
The euro fell sharply against the pound on Thursday, causing the EUR / GBP to exhibit a major reversal. after failing to hold above 0.8600 again.
The meeting of the European Central Bank on Thursday was in line with expectations, by maintaining rates and cutting the pace of purchases from the fourth quarter. There was no surprise or even a slight hawkish bias, which left the euro weak in the market.
In turn, the EUR / GBP break from major supports gave it further downward push. Friday’s data from the UK was mixed, with the most important, July GDP growth below expectations (0.1% vs. 0.6%), not affecting the pound. The cross maintained its bearish tone.
Should it affirm below 0.8530, the EUR / GBP will reaffirm the downward bias, enabling further declines with a possible target around 0.8505. On the upside, the first resistance is at 0.8550, followed by 0.8565.
Technical levels
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