EUR/GBP on track towards fresh nine-month lows as technical breakdown continues

Sellers stay poised to target the 0.8700 level next

In some ways, the pair is trading as more of a divergence in the virus/vaccine narratives as things are progressing far more smoothly for the UK than it is for Europe.

EUR/GBP D1 15-02

With cable also looking poised to move towards 1.4000, the shove lower in EUR/GBP is also helping to keep the pound underpinned in general for the time being.

Although price is already trading to its lowest levels since May last year, there is further room to roam for sellers with the 0.8700 level being targeted next.

That will be a key support level to watch alongside the April to May lows from last year around 0.8671-82. This is made more evident by the weekly chart:

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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