EUR/GBP refreshed 2.5-year low, and is not ready to stop

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Moscow) - EUR/GBP started the day at 0.8058, rose to 0.8064 in Asia, but soon retreated sliding to 0.8030 area at the moment.



Euro gives no choice



The pair is trading near 2.5-year lows around 0.8035 area refreshing the December, 2012 levels, and the euro weakness may stay the catalyst of new lows in the nearest term. The recently released data from France confirmed the inflation is still very low, as monthly reading came out below expectations (0.0% vs 0.1% forecasted). Wholesale prices in Germany showed negative numbers, only supporting the fears of deflation growing in the euro zone. If the pair continues the slide with EMU IP looming, the next target may become 0.8009 support.



What are today’s key EUR/GBP levels?



Today's central pivot point can be found at 0.8066, with support below at 0.8045, 0.8030 and 0.8009 with resistance above at 0.8081, 0.8102, and 0.8117. Hourly Moving Averages are mostly bearish, with the 200SMA at 0.8109 and the daily 20EMA bearish at 0.8123. Hourly RSI is bearish at 41.



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