The EUR to GBP pair trades lower for the fifth consecutive trading day as a correction from seven-month highs continues. The euro jumped on the news last Friday that Boris Johnson tested positive for the coronavirus but for one more day sellers outpaced buyers, and the downtrend resumed. The British pound was under selling pressure amid the coronavirus outbreak as traders worry that the UK government respond too late in adopting strict measures to contain the coronavirus outbreak.
ECB announced an extensive QE programme and held the interest rates unchanged in the latest policy meeting. ECB will purchase government, and corporate bond’s up to 750 billion in an emergency move to combat the coronavirus outbreak impact. ECB also called today European banks to cancel dividends through October.
On the economic data, the Economic Sentiment Indicator came in at 94.5, above the forecasts of 93 in March. The Industrial Confidence came in at -10.8, topping the forecasts of -12.7 in March. The Consumer Confidence came in at -11.6 in line with projections, and finally, the European Monetary Union Services Sentiment came in at -2.2, beating the expectations of -3.
EURGBP is 0.07% lower at 0.8929, as the pullback from recent highs continues for the eighth consecutive session. The pair has lost the bullish momentum as the recent correction continues with sellers targeting the 200-day moving average at 0.8755.
On the downside, first support for EURGBP pair stands at 0.8919 the daily low. A move below might test the next support at 0.8845 the low from March 13. More bids might emerge at 0.8755 the 200-day moving average.
On the other side, immediate resistance stands at 0.8987 the daily high. A convincing break above might challenge the next hurdle at 0.9092 the high from Friday’s session. A break above that resistance might test the next resistance at 0.9239 the high from March 26.