EUR/GBP consolidates losses with upside attempts capped below 0.8600
- The Euro is looking for a direction below 0.8590.
- Weak Eurozone data keeps fuelling hopes of ECB cuts and weighing on the Euro
- The pair is nearing a strong support area above 0.8500
The euro is trading sideways for the fifth consecutive day on Friday, with price action trapped within the upper range of 0.8500.
The market is showing hesitation, as shown by the Doji candles printed on the daily charts, following a more than 2% sell-off in late November, yet with no clear sign of a trend shift in sight.
On Thursday, the Eurozone GDP confirmed that the economy contracted in Q3, which, coupled with the lower inflation has fuelled speculation that the ECB will be forced to cut rates in early 2024. This has kept investors away from the Euro.
EUR/GBP is approaching hey support at 0.8500
The hourly charts show the downside trend losing steam, with 0.8540 holding bears ahead of a strong support area between 0.8500 and 0.8520.
On the upside, bulls should breach the 0.8590 resistance area, which closes the way to previous support levels at 0.8615 and 0.8640.
Technical levels to watch
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