I’ve been writing all year about the EURGBP and its constant decline whilst making new lows. Well at the end of this week we had a further point of interest as the currency closed below the psychological number 0.800 for the first time since September 2012.
Most of this was due to comments by BoE Governor Carney as he pointed to UK interest rates rising faster than expected – this was enough to re-ignite an already strong Sterling trend this year and accelerate it to new highs in GBPCHF, new lows in EURGBP and sent GBPUSD back to tickling the soft-underbelly of the 1.70 handle.
The daily chart shows how the decline accelerated over the last few days. The hint of a rise in UK rates was enough to power GBP through levels of support and resistance. We saw the support zone around 0.8030 was sliced through and now we look at 0.7960 zone as the next level. After that I’m looking at the lows of July 2012 around 0.7760 as the next major support level. At the moment, and based on the present sentiment, there’s every chance that it may head to those levels. We shall as always wait and trade what we see.
Trade well
Paul
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[…] posted earlier on Monday about how the EURGBP had closed below 0.8000 on a weekly basis and how 0.7960 was the next…. As you can see from the chart today’s price dropped to that level (not a massive move by […]