FxWirePro: EUR/GBP pauses declines at 110-EMA, break below cloud keeps downside pressure

EUR/GBP chart - Trading View 

EUR/GBP was trading unchanged at 0.8728 at around 11:30 GMT, after hitting session high at 0.8748 and low at 0.8712.

The pair has paused 2 straight sessions of declines at 110-EMA, scope for further weakness. 

The single currency depressed after EU Summit failed to agree on a broad recovery package and Gilead's Remdesivir medicine proved inconclusive with curing coronavirus. 

The British pound was pressured by Friday's disappointing UK retail sales figures for March, which reinforced the COVID-19 economic damage.

UK Retail Sales dropped by 5.1% month-over-month in March, more than the 4% month-over-month drop expected. 

The Bank of England (BoE) announced on Friday that it will continue to hold 3-month and 1-month contingent term repo operations each week of May.

The BoE further reiterated that it will continue to monitor market conditions and take further action if needed and added that it will allot zero funds to banks in contingent term repo operation for 1-month sterling funds (previous zero).

The pair has retraced below 200-DMA and daily cloud, reinforcing the downside bias. Downside resumption will see dip till 76.4% Fib at 0.8564.