EUR/GBP consolidates below 0.8000 pivot

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Moscow) - EUR/GBP broke below the psychologically important level of 0.8000 and entered a consolidation phase, though the downside may be extended during European hours



EUR/GBP is sinking



Mark Carney dropped EUR/GBP below the pivotal level of 0.8000, and the cross is set to continue the downside. It looks like the investors have already priced in a great deal in terms of a full-blown QE programme by the ECB, but the rate differential theme has come to the fore once again. The initial target to the downside may be seen at 0.7959 (the low of August 27, 2012), while the upside correction may be limited by 0.8000.



What are today’s key EUR/GBP levels?



Today's central pivot point can be found at 0.8025 with support below at 0.7981, 0.7961 and 0.7919, with resistance above at 0.8047, 0.8089, and 0.8011. Hourly Moving Averages are bearish, with the 200SMA at 0.8099 and the daily 20EMA at 0.8112. Hourly RSI is bearish at 25.



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