- EUR/GBP witnessed some follow-through selling for the second straight session.
- The offered tone surrounding the shared currency was seen exerting pressure.
- The British pound seemed unaffected by the lack of progress in Brexit talks.
The EUR/GBP cross continued losing ground through the early European session and dropped to fresh weekly lows, around the 0.8975 region in the last hour.
The cross added to the previous day’s losses and witnessed some follow-through selling for the second consecutive session on Wednesday. The downfall lacked any obvious fundamental catalyst and could be solely attributed to the shared currency’s relative underperformance against its British counterpart.
As investors looked past the previous day’s better-than-expected German macro data, the shared currency witnessed some selling on Wednesday on the back of a modest pickup in the US dollar demand. This, in turn, was seen as one of the key factors dragging the EUR/GBP cross lower.
On the other hand, the British pound was seen consolidating the overnight strong gains and seemed rather unaffected by the lack of progress in Brexit talks. The GBP bulls even shrugged off Tuesday’s weaker UK CBI distributive trade survey, which showed that sales fell -6% in August.
Apart from this, possibilities of some short-term trading stops being triggered below the key 0.9000 psychological mark further contributed to the EUR/GBP pair’s ongoing downfall. Bears might now be eyeing a move towards challenging over one-month-lows, around the 0.8945 region set last Friday.
Technical levels to watch
Share
