EUR/GBP drops further, tests 0.7830

The increasing bearish bias in the common currency is now dragging EUR/GBP to fresh lows in the 0.7830 area.

EUR/GBP in 4-week lows

The European cross has come under renewed selling pressure today, quickly breaking below the 0.7850 key support and accelerating its drop for the second straight week after the rejection from fresh cycle highs near 0.8120 in early April.

On the data front, flash manufacturing and services PMIs in the euro bloc have come in mixed, adding to the downbeat sentiment around EUR.

EUR/GBP key levels

The cross is now losing 0.63% at 0.7831 facing the next support at 0.7825 (low Mar.29) followed by 0.7675 (100-day sma) and then 0.7650 (low Mar.7). On the flip side, a breakout of 0.8119 (2016 high Apr.7) would expose 0.8349 (monthly high Feb.6 2014) and finally 0.8401 (2014 high Mar.18).