The EUR/GBP is falling for the third consecutive day in a row. From the last week high it has fallen almost two hundred pips making an important reversal. Recently it bottomed at 0.9094, the lowest since last Thursday.
Economic data from the UK released earlier on Wednesday showed higher than expected CPI numbers but it was not the catalyst for the slide of EUR/GBP. The euro weakened on the back of speculations about the need for more stimulus from the European Central Bank.
On the contrary, the pound is again among the top performers of the currency market supported by risk appetite and mainly by some sings that the United Kingdom government could soften its internal market legislation. Still, tensions between the UK and the Europe Unions are in place.
Market participants now turn their attention to the FOMC meeting. The Federal Reserve will announce its decision that could trigger market volatility.
The immediate support in EUR/UGBP is the 0.9100 level: a consolidation below would suggest more weakness ahead while the next support strand at 0.9065. On the upside, resistance levels might be seen at 0.9170 followed by 0.9205/10.