EUR/GBP Price Analysis: Weekly chart show risks tilted to the downside

• Euro weakened after the European Central Bank meeting.
• EUR/GBP is having worst week in a month, after being unable to hold above 0.8600.
• Risks continue to favor the pound, but strong support emerges around 0.8450.

The EUR/GBP dropped on Friday to 0.8519, the lowest level in three weeks, before rebounding back above 0.8530. The area around 0.8530 is the key short-term support, with a consolidation under that area opening the doors to 0.8505.

The weekly chart shows the euro being rejected again from above the 0.8600 area and also from the 20-week moving average. The bias still favors the downside. Below 0.8500 the bearish pressure could raise, exposing the 0.8450 zone. The area around 0.8470 is a strong barrier.

On the upside, a weekly close clearly above 0.8600 should strengthen the outlook for the euro, pointing to more gains, targeting initially levels above 0.8700.

EUR/GBP Weekly chart