EUR/GBP extending losses below 23.6% Fibo

EUR/GBP is extending losses below 0.8384 (23.6% Fibo retracement of Brexit drop) in Asia on account of the corrective rally in Sterling.

Trades below long-term 50% Fibo

The cross sits well below 0.8368 (50% Fibo retracement of Dec 2008 high – July 2015 low). The pair fell to a session low of 0.8299 before trimming losses to trade around 0.8323 levels.

Corrective move in sterling appears to have gathered pace on realization that Bank of England (BOE) could prefer to wait for more economic data and thus may not cut rates this week.

EUR/GBP Technical Levels

A move back above 0.8368 (50% Fibo of Dec 2008 high – July 2015 low) - 0.8384 (23.6% Fibo retracement of Brexit drop) could open doors for a possible break above 0.84 (zero figure) and re-test of 0.8448 (10-DMA). On the other hand, a breakdown of support at 0.83 could yield 0.8234 (38.2% of Brexit