EUR/GBP struggles with 0.7900 post-UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The EUR/GBP cross turned negative and tries hard to keep the 0.79 handle following the release of the second estimate of the UK Q4 2015 GDP.

    EUR/GBP ran through fresh offers post-data

    Currently, the EUR/GBP pair trades modestly flat at 0.7904, reversing a spike to 0.7919 post-UK GDP data. The EUR/GBP cross keeps range and clings to 0.79 support after the UK GDP print matched estimates, offering little help to the cable. The second estimate of the UK GDP for the fourth quarter remained at 0.5% and the yearly print also confirmed 1.9% growth.

    The cross failed to sustain near fourteen–month highs as the recovery in the EUR/USD pair lost steam after the euro was weighed down by the European stocks rebound. Markets now await the Euro zone final CPI due for release shortly for fresh insight on the cross.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7929 (Daily High), above which it could extend gains to 0.7973 (Daily R2/ Dec 2014 levels). To the downside immediate support might be located at 0.7853 (5-DMA) below that at 0.7797 (1h 200-SMA).
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