EUR/GBP jumps to fresh 3-month highs near 0.7450

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/GBP cross sees the biggest daily gain in more than 2-weeks and rallies to the highest levels since Oct last year on the back of a strong pullback in the EUR/USD pair.

    EUR/GBP aims for 0.7500

    Currently, the EUR/GBP pair rises nearly 1% to 0.7441, hovering close to fresh three-month highs scored at 0.7449 in last hours. The ongoing upbeat momentum in the EUR/USD pair coupled with heavy losses seen in the cable provides double booster shot to EUR/GBP.

    The EUR/USD pair extends higher on the back of the deepening slump in the European stocks while the pound remains heavy against the US dollar as investors back-off from risk currencies on renewed China slowdown fears triggered by PBOC yuan fix devaluation.

    Calendar-wise, Euro land’s retail sales contracted 0.3% in Nov, compared with a 0.2% decline seen in October. While the region’s unemployment rate dipped further in Nov, to 10.5% from 10.6% the previous month, hitting the lowest since 2011.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7476 (Oct 14 High), above which it could extend gains to 0.7500 (round number). To the downside immediate support might be located at 0.7371 (5 & 10-DMA) below that at 0.7305 (Dec 23 Low).
    For more information, read our latest forex news.

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