EUR/GBP drops below 20-DMA on solid UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP bulls tightened grip in the European session, with EUR/GBP falling below 0.7350 levels, after sterling witnessed renewed buying interest following the releases of impressive UK industrial production and manufacturing data.

    EUR/GBP remains heavy and at fresh lows

    Currently, the EUR/GBP pair sinks -0.78% to fresh session lows of 0.7345, falling further from around 0.7360. The EUR/GBP cross remains relentlessly offered and now fell below 20-DMA after the rebound in the UK’s industrial sector lifted the cable to fresh 2-week highs above 1.5300.

    The total industrial production in the UK rose 1% m/m in Aug versus expectations of a 0.3% gain and rebounded from -0.4% seen in July. While the manufacturing output also rose above expectations and to fresh 6-month highs (0.5% m/m vs. -0.8% exp.)

    Adding to the bearish pressures, EUR/USD also remains heavy on the back of rallying European stocks and poor German industrial production data.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7405 (Today’s High and near the psychological levels) and above which it could extend gains to 0.7441-42 (Sept 29 & Oct 2 Highs). To the downside immediate support might be located at 0.7290 (Sept 11 Low & 50-DMA) below that at 0.7218 (200-DMA).
    For more information, read our latest forex news.

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