EURGBP set for fifth-weekly drop

The EURGBP continued its drop on Friday, set for its fifth straight weekly drop, on worries after ECB stimulus comments.

The ECB gave some details about the plan by revealing would start buying bonds on March 9, where the purchases will amount to 60 billion euros each month.

ECB President Mario Draghi said the bank may extend its bond purchases beyond September 2016, if deflationary pressures persist.

Investors interpreted the comments negatively, as they now believe it may take longer time overcome deflation threats.

Although the BOE does not intend to raise interest rates this year, the outlook for the U.K. looks more positive than the euro, especially amid the lingering fiscal imbalances facing Greece.

Meanwhile, the EURGBP is trading around 0.7206, where the session’s low was hit at 0.7180 and the was high was touched at 0.7237.

From a technical point of view, the pierce of Fibonacci Expansion support level of 61.8 percent should push the pair lower to the next Fibo. Support located at 0.6775.