EUR/GBP struggles near multi-week lows, around mid-0.8900s
- EUR/GBP remains depressed near multi-week lows through the early European session.
- Investors seemed to have moved on the sidelines ahead of the Jackson Hole Symposium.
- The BoE Governor Andrew Bailey's speech on Friday might provide some directional impetus.
The EUR/GBP cross was seen consolidating its recent fall to multi-week lows and seesawed between tepid gains/minor losses, around mid-0.8900s through the early European session.
The cross found some support near 100-day SMA and for now, seems to have stalled this week's sharp pullback from the vicinity of mid-0.9000s. The two-day-old downward trajectory was exclusively sponsored by the British pound's relative outperformance against its European counterpart.
The GBP bulls largely shrugged off concerns over the lack of progress in Brexit talks. On the other hand, the shared currency has been consolidating in a narrow trading band as investors remain on the sidelines ahead of the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium on Thursday.
There isn't any major market-moving economic data due for release, either from the UK or the Eurozone. Hence, the focus now shifts to BoE Governor Andrew Bailey's remarks on Friday, which will influence the EUR/GBP cross and assist traders to determine the next leg of a directional move.
From a technical perspective, bearish traders are likely to wait for a sustained break below 100-day SMA before positioning for any further depreciating move. On the flip side, any attempted recovery move now seems to confront a stiff resistance near the key 0.9000 psychological mark.
Technical levels to watch