EUR/GBP: Draghi driven losses recovered

FXStreet (Mumbai) - The EUR/GBP pair has taken back entire Draghi driven losses to trade at session highs in the US session, but still the weekly loss appears as a done deal.

Strong support around 0.6980s

The cross bounced back from the low of 0.6984; a level which has acted as a strong support since Tuesday. On similar lines, the upside has been repeatedly capped around 0.7020 levels.

At the moment, the cross is trading around 0.7015 levels. The latest recovery off lows appears more due to the rebound in the EUR/USD pair to 1.07 levels in the US session. Meanwhile, GBP/USD stayed weak around 1.5250.

EUR/GBP Technical Levels

The immediate resistance is seen at 0.7033 (Tuesday’s high), above which the gains could be extended to 0.7042 (Nov 5 low) and 0.7047 (10-DMA). On the other side, a break below 0.6984 (daily low) could open doors for a sell-off to 0.6951 (Aug 5 low).

Nov 20, 2015

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