EUR/GBP Price Forecast: Reaching oversold levels at six-week lows sub-0.8550
The Euro (EUR) is dropping sharply against the British Pound (GBP) on Wednesday, as UK data has endorsed recent claims by Bank of England (BoE) officials to hike interest rates, while German data disappointed on Wednesday.
The Euro (EUR) is currently depreciating against the British Pound (GBP), hitting six-week lows of 0.8540 on Wednesday. UK data released on Wednesday showed strong economic growth, with the economy expanding by 0.5% in the second quarter, 1.4% year-over-year, exceeding earlier estimates. However, a narrower UK Current Account deficit and disappointing Eurozone Retail Sales data added pressure on the pair.
EUR/GBP has experienced a 0.6% decline this week, breaking the bottom of the ascending channel and showing deep oversold levels according to technical indicators. The 4-hour Relative Strength Index (RSI) is near 25, indicating a stretched downward trend, while the Moving Average Convergence Divergence (MACD) remains negative. Analysts suggest a possible corrective bounce near the 0.8560 resistance level, with further focus on the September 29 high of 0.8585.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
