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EUR/GBP weighed upon EUR/USD flows

FXStreet (Guatemala) - EUR/GBP has taken a hit with EUR/USD cross flows weighing heavily on the pair as risk aversion is sweeping the through the market.

EUR/GBP fell from above 0.8350 and marked a low of 0.8330. The US dollar, as a safe haven once again, is suffocating the euro as there are tensions building upon the Ukrainian situation with reports of Russian troop build-ups along the Ukrainian border. Meanwhile RBS strategists noted that construction output and trade figures for January are due in the UK. “The trade figures are somewhat erratic on a month-to-month basis but the persistent deficit that will likely be reported remains a key medium-term structural headwind for GBP”.

EUR/GBP Levels

The 20 DMA is 0.8252, 0.8265, 0.8426. RSI (14) reads 71.48. Supports are ascending from 0.8245, 0.8259 and 0.8286. Spot is 0.8335 while resistances are 0.8360, 0.8374, 0.8394, 0.8432 and 0.8467.

EUR/USD drops to 1.3850

The single currency accelerates its intraday downside on Thursday, now challenging levels sub-1.3850 following President Draghi’s dovish comments....
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