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EUR/GBP testing lows near 0.7015 on UK CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The offered tone on the GBP reduced following the release of the UK CPI data, pushing EUR/GBP further in the red zone just ahead of 0.70 handle.

    EUR/GBP: Downside risks escalate on UK data

    Currently, the EUR/GBP pair trades -0.16% lower at 0.7018, heading towards session lows reached at 0.7013 levels. The cross witnessed fresh selling pressure after the pound was boosted on the release of in line with estimates UK CPI figures.

    The annualized UK CPI continued to remain at a record low rate of -0.1% for the second straight session. Meanwhile m/m CPI rose above zero by 0.1%, figures from the Office for National Statistics (ONS) showed on Tuesday.

    While the bearish pressures remain intact on the back of ongoing weakness in EUR/USD, which now trades near seven-month low. The euro remains suppressed on the back of looming uncertainties on the Euro land’s growth outlook after Friday’s Paris attacks.

    Looking ahead, focus now turns to the US CPI and industrial production data due later today for further cues on the cross.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7034/46 (daily high/ 1h 50-SMA/), above which it could extend gains to 0.7061 (1h 100-SMA). To the downside immediate support might be located at 0.7000 (round number) below that at 0.6981 (June low).
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