News and Trade Ideas (EURGBP)

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EUR/GBP weakens after hawkish Bank of England comments

EUR/GBP heads back towards key support

The sterling strength seen in the wake of these comments has helped drive EUR/GBP back down towards the 0.8472 lows established in April.

From a wider perspective we can see that a break below that level would signal a potential move back down towards the 0.8282 lows.

Source: ProRealTime

From an intraday perspective, the four-hour chart shows how the latest rebound fell short at the 100-simple moving average (SMA) moving average.

With the wider trend of lower highs continuing to play out, it looks likely we will see further weakness from here on in. As such, a bearish view holds until price breaks through the prior swing low (currently 0.8618).

Source: ProRealTime

 

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 15 July 2021. IG