EUR/GBP down more than 100 pips

The Euro weakened in the market during the last hours while the pound gained momentum pushing EUR/GBP sharply to the downside. The pair broke the strong support located at 0.8850 (last week lows) and tumbled to 0.8760, the lowest level in five weeks. 

The pair remains near daily lows and from today’s high it has fallen 250 pips. Price action in the EUR/GBP followed the reversal in stocks. In Wall Street, the Dow Jones index has just broken above 18,500 and it reached a 2-month high. The future of the index has risen more than 1,000 points from Asian session lows. 

EUR/GBP breaking range 

Today’s decline, if confirmed, would end a 3-week trading range between 0.8850 and 0.9050. The next relevant support could be seen around 0.8725 (August high) followed by 0.8580/90  (Sep 18 & 28 low). 

If the euro rises back above 0.8850, the range could prevail but still with risks tilted to the downside, considering that the price would remain below the 20-day moving average that stands at 0.8940 and also below an uptrend line from June lows.