EUR/GBP deflated by dovish Draghi comments which boolstered expectations for ECB to cut depo rate, expand/extend QE at Dec 3 meeting .
- Draghi said indications that inflation will recover are weakening and that that if price stability at risk, ECB would use all instruments within their mandate.
- The remarks address a key barometer of economic health that is used to determine what further action, if any, the ECB will take to ease monetary policy.
- EUR/GBP hit session lows at 0.7040 and has hence pared some losses to currently trade at 0.7056.
- Strong trend-line support seen for the pair at 0.7040. The pair has taken support and edged higher. Immediate resistance is seen at 0.7078 (session high Nov 12th)
Recommendation: Good to buy dips around 0.7040, SL: 0.6950, TP: 0.7145.
Resistance Levels:
R1: 0.7078 (session high Nov 12th)
R2: 0.7095 (Aug 10 high)
R3: 0.7113 (Aug 17 high)
Support Levels:
S1: 0.7040 (Trend-line support)
S2: 0.7031 (Aug 19 low)
S3: 0.7025 (Aug 18 low)
