EUR/GBP back below 0.8500

FXstreet.com (Barcelona) - The pair is now facing increasing selling pressure as the pound continues to gain traction in contrast with a steady euro on Thursday.

Ahead of the BoE and ECB meetings due later, Currency Strategist Ilya Spivak at DailyFX, commented, “the formation of a Triangle Chart preceded a breakout higher, as expected. Prices have now pulled back to near-term support at 0.8494, with a drop below that eyeing the triangle top at 0.8465. Near-term resistance is at 0.8575, with a break above that exposing the 23.6% Fibonacci expansion at 0.8648”.

As of writing EUR/GBP is down 0.07% at 0.8492 with the next support at 0.8475 (low May 14) followed by 0.8441 (low May 21) and then 0.8400 (low May 6). On the upside, a breakout of 0.8547 (high Jun.5) would open the door to 0.8559 (high Jun.4) and finally 0.8578 (high May 31).

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