EUR/GBP Tumbles to Six-Week Lows Amid UK Economic Growth
The EUR/GBP pair has hit fresh six-week lows at 0.8540 as the Euro continues to drop sharply against the British Pound.
According to Mitrade, this downtrend is driven by UK data that supports recent claims from Bank of England officials to hike interest rates. The final Q2 GDP data revealed a 0.5% growth pace and 1.4% year-over-year growth, exceeding previous estimates.
The EUR/GBP chart has broken the bottom of an ascending channel from late July, indicating bears are in control. Despite reaching oversold levels, intraday momentum indicators suggest a corrective bounce is possible, but it's likely to face significant resistance at the 0.8560 area and September 17 and 28 lows.
The trend remains negative, with the RSI currently near 25, making it unlikely to extend below the 0.8530-0.8540 support area in coming sessions.