EUR/GBP touched a low of 0.8492 before bouncing back following weak UK PMIs. Economists at Société Générale analyze the pair’s technical outlook.
Decline could extend on failure to defend 0.8500
EUR/GBP has experienced a steady pullback after forming a lower high at 0.8670. July trough at 0.8500 is next potential support.
Daily MACD has recently dipped below its trigger and is now below equilibrium line denoting lack of steady upward momentum.
If the pair fails to defend 0.8500, the decline could extend towards next projections at 0.8455/0.8440.
High formed earlier this week at 0.8565 is first hurdle
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