EUR/GBP keeps falling and eyes 0.7600

EUR/GBP continued to decline during the American session and moved closer to 0.7600. The pair dropped to 0.7611 hitting a fresh 3-month low. Currently, it trades at 0.7614/18, down 1.67% for the day.

The euro, that rose during the previous two days weakened sharply and tumbled breaking today the 0.7650 support area, opening the doors for more losses. Under 0.7600 the next relevant support could be seen at 0.7520 - 0.7480.

Brexit, data and the euro

EUR/GBP decline on Tuesday was due to a combination of a stronger pound amid new Brexit polls and the testimony of Bank of England officials at the Treasury Committee; also a weak euro contributed to the decline. The common currency was among the worst performers in the market, falling even against the Swiss franc.

Price accelerated to the downside today, extending the decline from April highs. From 0.8116 (2016 high, reached on April 7) the pair lost more than 6%, making a significant reversal. The trend and volatility could remain sensitive ahead of the Brexit referendum.