EUR/GBP posts first daily close below 0.8000 in 20 months

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The EUR/GBP dropped for the eighth trading day in a row and posted the lowest daily close since November 2012, below 0.8000. A weak Euro post-ECB and a soaring Pound, boosted by Carney speech, pushed the pair sharply to the downside.



During Friday broke below 0.8000 and tumbled to 0.7970. The EUR/GBP finished the week trading around 0.7980, 140-pips below the price it had seven days ago.



EUR/GBP outlook



The consolidation below 0.8000 could suggest a bearish continuation. The downside momentum remains highs despite oversold conditions in short term technical indicators. Monetary policy divergence between the ECB and the BoE favored the downside during recent weeks and could continue that way.



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