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EUR/GBP reverses a dip to 0.7730 post-UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The EUR/GBP cross picked-up significant strength over the last hours, largely on the back of a renewed weakness seen in the cable, as markets ignored upbeat UK retail sales data.

    EUR/GBP heads towards daily highs?

    Currently, the EUR/GBP pair trades 0.20% higher at 0.7760, reversing a downward spike to 0.7733 session lows. The EUR/GBP cross witnessed more than 30-pips rally following the release of better than expected UK retail trade data. The UK retail sales to 2.3% m/m from -1.4% previously, while rose to 5.2% y/y from 2.3% in December.

    The pound failed to benefit from the upbeat macro release and instead dropped sharply across the board, mainly on the back of sudden buying interest seen around the greenback. The USD index rallies 0.15% to 97 levels. However, the upside remains restricted in the cross as the EUR/USD pair remains under pressure ahead of the US CPI data.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7800/13 (round number/ daily R1), above which it could extend gains to 0.7847/50 (Feb 17 High). To the downside immediate support might be located at 0.7703/00 (20-DMA/ psychological levels) below that at 0.7643 (daily S2).
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