FXStreet reported that Societe Generale analyst Kenneth Broux saw a possible EUR/GBP floor near 0.8370/0.8355, close to the European Central Bank's 0.83770-pound reference rate on Oct. 22.
The ECB set 1 euro at 0.83770 British pounds that day, compared with 0.83825 on Oct. 21 and 0.85373 on Oct. 1. EUR/GBP expresses how many pounds one euro buys, so the lower readings show a decline in the euro's reference value against sterling over that period.
In FXStreet's account, Broux's technical analysis placed the possible support range near the base of a chart pattern that had moved lower for several months. The report said the pair had fallen below its July low.
FXStreet also reported that Broux identified 0.8430 as initial resistance. He said the downward move could continue if EUR/GBP did not rise above that level.
The ECB says its reference rates are for information and are not recommended for transactions. The Oct. 22 fixing is a daily benchmark; it does not show whether EUR/GBP traded within Broux's reported support range during the session.
