EUR/GBP Falls to 0.84 as Pound Extends Gains, SocGen Says Move Stretched
EUR/GBP has dropped to the 0.84 handle, its lowest since June last year, after breaking a Head and Shoulders neckline at 0.8610. Societe Generale notes the move appears stretched.
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Sterling has continued to strengthen against the euro, with the EUR/GBP cross extending its decline. According to Societe Generale's Kenneth Broux, the pair broke below a Head and Shoulders neckline at 0.8610, triggering further selling.
The cross has now fallen to the 0.84 handle, marking its lowest point since June of last year. This represents a drop of roughly 4.5% from the neckline level.
Societe Generale highlights that the recent move is now considered stretched, suggesting the pace of the decline may be overdone in the near term.
Source: FXStreet Forex News