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EUR/GBP drops from daily highs on upbeat UK GDP figure

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The bid tone around GBP strengthened following the release of an upbeat UK Q3 GDP figure, pushing the EUR/GBP cross back to 0.7635 from the daily high of 0.7662.

    Eyes hourly 200-MA

    The cross is now eyeing the hourly 200-MA support at 0.7630. The British Pound was buoyed by the data released in the UK that showed UK economy expanded by a 0.5% in the final three months of last year, compared to 0.4% growth in the previous quarter. This was in line with expectations.

    The index of services also ticked higher to 0.6% as expected, while the annualized GDP figure fell to 1.9%, again as expected. The focus now is on the German preliminary CPI figure due for release in few minutes.

    EUR/GBP Technical Levels

    The immediate support is seen at 0.7630 (hourly 200-MA), under which the pair could drop to 0.7596 (hourly 100-MA). A break lower would expose 0.7573 (23.6% of 0.6981-0.7755). On the other hand, a break above 0.7666 (previous day’s high) could see the pair test 0.77 handle, above which a major hurdle is seen at 0.7755 (Jan 20 high).
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