EURGBP Selling Pressure Accelerates At Three-Week Lows

The EUR to GBP pair continues lower for the eighth consecutive session as the British pound strengthens across the board. The European Monetary Union Producer Price Index came in at -0.6% below the expectations of -0.2% in February, the yearly reading for the Producer Price Index registered in at -1.3% below the forecasts of -0.7%. Germany’s KfW development bank warned that the German economy is likely to contract by 10% to 15% in the second quarter of 2020.

On the other hand, the UK Nationwide Housing Prices came in at 0.8% topping the forecasts of -0.1% in March, the yearly reading for Nationwide Housing Prices registered in at 3%, also above the expectations of 0.2%.

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EURGBP Price Resistance and Support 

EURGBP is 0.88% lower at 0.8779, as the correction accelerates after eight days of selling pressure. The technical picture is negative for the short term, and the last support before the pair entering bear area is the 200-day moving average at 0.8753.  

On the downside, first support for EURGBP pair stands at 0.8773 the daily low. A move below might test the next support zone at 0.8753 the 200-day moving average. More bids might emerge at 0.8672 the 50-day moving average.  

On the other side, the initial resistance stands at 0.8856 the daily high. A break above might challenge the next hurdle at 0.8911 the high from yesterday’s session. A break above that resistance might test the next resistance level at 0.8967 the high from March 31.  

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