27.08 - EUR/GBP remains depressed near multi-week lows
- by George Solotarov
The EUR/GBP cross was seen consolidating its recent fall to multi-week lows and seesawed between tepid gains/minor losses, around mid-0.8900s through the European session. The cross found some support near 100-day SMA and for now, seems to have stalled this week's sharp pullback from the vicinity of mid-0.9000s. The two-day-old downward trajectory was exclusively sponsored by the British pound's relative outperformance against its European counterpart.
The GBP bulls largely shrugged off concerns over the lack of progress in Brexit talks. From a technical perspective, bearish traders are likely to wait for a sustained break below 100-day SMA before positioning for any further depreciating move. On the flip side, any attempted recovery move now seems to confront a stiff resistance near the key 0.9000 psychological mark.