Temporary Selling Pressure on EURGBP Following UK's GDP Data
EURGBP fell earlier today following the release of the UK's weaker-than-expected GDP growth rate numbers for Q3. The price action is currently probing the major support level at 0.84850, underpinned by the 300-day MA (in purple). At the same time, it appears to be developing a bearish 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory.
If the price action manages to penetrate below the 300-day MA, its next likely target would be the previous swing low at 0.84200. Conversely, a rebound from 0.84850 could be followed by a throwback to the 38.2 per cent Fibonacci retracement level at 0.85166.
If the price action manages to penetrate below the 300-day MA, its next likely target would be the previous swing low at 0.84200. Conversely, a rebound from 0.84850 could be followed by a throwback to the 38.2 per cent Fibonacci retracement level at 0.85166.
