EUR/GBP on track towards fresh nine-month lows as technical breakdown continues

Technical Analysis

Author: Justin Low | eurgbp

Sellers stay poised to target the 0.8700 level next

In some ways, the pair is trading as more of a divergence in the virus/vaccine narratives as things are progressing far more smoothly for the UK than it is for Europe.

EUR/GBP D1 15-02
With cable also looking poised to move towards 1.4000, the shove lower in EUR/GBP is also helping to keep the pound underpinned in general for the time being.

Although price is already trading to its lowest levels since May last year, there is further room to roam for sellers with the 0.8700 level being targeted next.

That will be a key support level to watch alongside the April to May lows from last year around 0.8671-82. This is made more evident by the weekly chart:

EUR/GBP W1 15-02
The break below the key weekly moving averages two weeks back is stretching further and that is helping to keep pound sentiment more buoyed for the time being.
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