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EUR/GBP breaks below 0.7245 as Pound soars

FXStreet (Córdoba) - EUR/GBP dropped below 0.7240 and accelerated to the downside, hitting a fresh daily low at 0.7221. The pair remains near the lows as GBP/USD climbed toward 1.5200. The pound rallied across the board during the last hours with no particularly reason ahead of the release of the decision and the minutes of the Bank of England, that will be published tomorrow at 12:00 GMT.

EUR/GBP correction intensifies


The pair is falling so far modestly on Wednesday as it corrects lower after being unable today to break above yesterday’s highs located at 0.7279. From the highs is has fallen more than 50 pips, but the short-term outlook has turned bearish.

To the downside, the relevant immediate support is located at 0.7200, where the 100 and 200-day MA currently stands. As long as the price remains above, the decline could be limited; but if it drops under, the decline could accelerate.

On a wider perspective, looking at the weekly chart the pair continues to consolidate, between 0.6900 and 0.7400, currently with the price attempting to rise above the 20-week MA (0.7210).

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