Forex: EUR/GBP falls to a 4-month low

 @ibtimes
on January 19 2010 8:40 AM

FXstreet.com (Córdoba) - The Euro is losing ground against the Pound for the sixth consecutive day on Tuesday. EUR/GBP fell to 0.8727, reaching the lowest price since September 11. The pair has fallen more than 300 pips since last Tuesday after finding resistance at 0.9030.

To the downside the pair has a key support at 0.8700 (Sep 4 low) and below the next one lies at 0.8660 (Aug 14 high / Aug 24 low). To the upside, resistance could be located at 0.8785 and above at 0.8830. Currently EUR/GBP trades at 0.8744/48, 0.64% below today's opening price.

The British pound seems to be the winner in the momentary debt discussion, overshadowing the euro, having gained considerable territory against the euro within a fortnight, while acting stronger against the dollar, too, the Swiss e Trade Strategy Team says. The latter might be caused by the market's current expectation that the BoE will end the quantitative easing before the U.S. does.

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