EUR/GBP took a pause before another wild ride

By FXstreet.com | July 03, 2014 AAA

FXStreet (Moscow) - EUR/GBP is dancing around 0.7950 area rebounding to 0.7960 at the moment.



Two factors for the fall



The pair is in clear downside trend, and no wonder given the divergence not only of fundamental, but also of monetary nature. Today we may get another two reasons to sell the cross – stronger than expected UK service PMI data, and more dovish than expected Draghi comments. If both conditions are met the next target for the pair may be at 0.79 not seen from September, 2012.



What are today’s key EUR/GBP levels?



Today's central pivot point can be found at 0.7963, with support below at 0.7944, 0.7931 and 0.7912 with resistance above at 0.7976, 0.7995, and 0.8008. Hourly Moving Averages are largely bearish, with the 200SMA at 0.7996 and the daily 20EMA bearish at 0.8022. Hourly RSI is bearish at 38.



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