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EUR/GBP recent losses could trigger retreat below 0.8500

FXstreet.com (New York) - The EUR/GBP technical cross has plunged Wednesday as the GBP strengthens across the board, trading near session lows at 0.8533.

At this juncture, the EUR/GBP is now navigating the region of 0.8538, en route to a staunch decline of -0.56% off its opening. Briefing the technicals, the EUR/GBP blew through previous supports and will now look to 0.8542 to suspend any further collapse, calculates the Mataf.net analyst team.

EUR/GBP strategic bias

According to Axel Rudolph, an analyst at Commerzbank, “The EUR/GBP slid through the 55-day MA at 0.8584 to the four month support line at 0.8534. From there it has since bounced back all the way to the 55-day MA. Today we expect to see some range trading. Since a fall through the 0.8576 July 10 low has nonetheless been seen, our forecast of a top having been formed at 0.8768 on the first day of August, has been confirmed. At present unexpected failure at 0.8532 will push the 0.8500 region and the June low at 0.8470 back into the picture.”

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