EUR/GBP fades a spike to 0.7790 on UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/GBP cross quickly reversed a brief spike near 0.78 handle and reverted to the familiar range around 0.7775 levels, following the release of downbeat UK industrial output data.

    EUR/GBP back to square one post-UK IP data

    Currently, the EUR/GBP pair trades -0.34% lower at 0.7775, reversing a spike to 0.7790 levels reached pre-data release. The EUR/GBP cross was little changed on the weaker UK industrial figures as markets appear to already price-in such a print, as the cable dropped sharply towards daily lows just few minutes before the data release.

    The UK's total industrial production in December dropped by 1.1%; it's lowest output level since September 2012, while the manufacturing production, also missed estimates, falling 0.2% m/m.

    Moreover, the losses in the EUR/USD pair amid relief rally seen in the European stocks, also adds to the offered tone on the EUR/GBP cross. Meanwhile, markets will continue to digest the latest industrial production report from the UK ahead of Yellen’s testimony due alter in the NY session.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7796/0.7800 (daily pivot/ round number), above which it could extend gains to 0.7834 (Jan 2015 High). To the downside immediate support might be located at 0.7725 (1h 100-SMA) below that at 0.7672 (10-DMA).
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