EUR/GBP hits fresh lows under 0.8500

EUR/GBP continued to decline during the American session and printed a fresh daily low at 0.8484, reaching a 2-week low.

Accelerating decline

The pair is falling today for the third day in a row amid a stronger pound in the market. Last week EUR/GBP peaked at 0.8723, the highest level in three years. Since then it has fallen more than 200 pips, making a strong reversal.

Now it trades at 0.8505, off daily lows but still remains under pressure. The area around 0.8485/95 is a relevant short-term support; a break lower could add bearish momentum to the pair. Below the next support could be seen at 0.8345/50 (July 26 & 27 low) and 0.8300 (July 20 & 22 low).

On the opposite direction, resistance level might lie at 0.8540 (20-hour moving average), 0.8560 (Aug 23 low) and 0.8590 (Aug 18 low).