EUR/GBP is on the way to 2-year lows again

FXStreet (Moscow) - EUR/GBP opened the day at 0.7897, slid to 0.7892, and may go even further.

Two factors to watch

Yesterday, the cross managed to go above 0.79 helped by disappointing MPC minutes that killed the hopes of the pound bulls for earlier than expected rate hike. The BOE is still worried about the slack in labor market, and it means the monetary authorities are not going to change anything during the coming meetings. Today the pair already slid below 0.79 as it focused on two factors of influence – the EMU PMI’s and the UK Retail Sales. The one that comes out stronger than expected will drive the cross. The initial target to the upside may be at 0.7916, and the downside may be protected by 0.7878 support.

What are today’s key EUR/GBP levels?

Today's central pivot point can be found at 0.7894, with support below at 0.7878, 0.7856 and 0.7840 with resistance above at 0.7916, 0.7932, and 0.7954. Hourly Moving Averages are mixed, with the 200SMA bearish at 0.7918 and the daily 20EMA bearish at 0.7943. Hourly RSI is bearish at 46.

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