EUR/GBP slides to lows of the session after Draghi

After the initial rise during the speech of Draghi, the pair EUR/GBP came under pressure as investors assessed his statements as euro-negative.

After climbing to a session high at 0.8475, the couple gave was spent and fell to 0.8430, where is registering a daily loss of 0.65%. As expected, the ECB left its monetary policy unchanged on Thursday and gave no clues for a possible change of policy in the short term.

Although Draghi reiterated that the economic recovery has been broad and strong, emphasized that the governing council has not discussed the output of the stimulus or to remove the bias from easing of interest rates. A recent survey from Bloomberg suggested that it is likely that the ECB will make a change in the guide of fees in the meeting of the 8th of June and announce a QE that will be constricted in the meeting of 7 September.

In terms of the political situation in the euro zone, Draghi said that they were discussing the policy at their meetings, not policy, and added that concerns about protectionism in the global have declined lately.

Technical perspective

The pair faces immediate support at 0.8400 (psychological level) and waiting to 0.8350 (April 21) and 0.8320 (April 18).

To the upside, with a break above 0.8500 (psychological level), the pair could aim for 0.8560 (April 26) and 0.8590 (4 April).

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