ECB President Mario Draghi faced up to the fact that the European economy is going through another rough patch yesterday, scuppering any thoughts that monetary tightening may be on the agenda sometime before October.
The ECB Bank Chief said that due to “persistent uncertainty relating to geopolitical factors and the threat of protectionism” risks have now “moved to the downside”, despite this Draghi insisted the bank had all of its “toolbox still available”. The euro slumped as a result pushing the pound to its highest level since mid-April, with the pound currently trading at €1.1559 after edging close to the €1.16 in yesterday’s trading.
EUR/GBP (Hourly) - Bearish
· On a technical perspective, the trend is bearish, with prices below the 20, 40, 100 and 200 EMA.
· Prices failed to break above the 20 EMA and retraced. This indicates that selling pressure is present.
· The downtrend line is still intact.
· Based on the pivot point analysis, prices are currently below the pivot level. This signifies bearishness.
Resistance: R1: 0.87009, R2: 0.87494, R3: 0.88226
Support: S1: 0.86277, S2: 0.86030, S3: 0.85298