EUR/GBP recovers as Euro Stoxx drops

By FXStreet FXStreet (Mumbai) – The bid tone on the EUR recovered, helping the EUR/GBP pair trim losses and move back to 0.7330 on signs of risk aversion in the European equity markets.

Supported by 200-DMA

The pair found support at its 200-DMA located at 0.7312 as the pan-European equity index Euro Stoxx 600 declined 0.80%. The risk aversion is pushing the traditional safe havens and funding currencies higher. Moreover, the Fed’s dovish turn has not been well received by the markets.

The cross ended the previous session above its 200-DMA as the US equities fell back into losses post FOMC statement.

EUR/GBP Technical Levels

The immediate resistance is located at 0.7359 (Sep 16 high), above which the pair could rise to 0.7400 levels. On the other side, support is seen at 0.7312 (200-DMA) and 0.7266 (Sep 16 low).
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Source:: FX Street