The EUR/GBP pair has been moving sideways since the 22nd of January 2016, with the price oscillating between the levels of 0.7667 and 0.7550.
On Wednesday, the European cross rallied from as low as 0.7564 to as high as 0.7667. Today, the pair fell, currently testing lows in the 0.7620 area, ahead of the advanced reading of the U.K.’s fourth quarter GDP, expected to be 1.9% YoY. In the event that the sellers keep exerting strong pressures and the price breaks below 0.7596, the pair could find support at 0.7579 and 0.7525 in extension.
Alternatively, in the scenario where the market attempts a retracement to the upside and the price breaks above the high of 0.7667, the pair could escalate up to 0.7707 and 0.7754 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.