EUR/USD fell to an 11 month low, due to German weakness and more due to the US dollar rally. However, the relatively hawkish meeting minutes in the UK (with two dissenters voting for a rate hike) sent the pound higher and rescued it from the abyss.
The result is a sharp drop in the cross: EUR/GBP fell down and lost the 0.80 line. Is the correction over?
EUR/GBP gradually dropped, but changed direction in recent weeks, mostly due to the fall in the value of the British pound, while the euro continued ticking down.
Even if don’t see a real recovery in the pound but only see a stabilization, the continued fall in the euro could be good enough to resume the downtrend of the cross.
Here is how it looks on the weekly chart. In the bigger picture, the euro/pound cross still has a long way to go on its way down.
