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EUR/GBP testing lows post-German data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The renewed weakness around the single currency has prompted EUR/GBP to slip further and print session lows in the 0.7340/35 band.

    EUR/GBP follows EUR-weakness

    The European cross is extending its daily decline in response to an increasing selling mood around the euro despite the positive results from the German labour market. In fact, the German jobless rate has stayed put at 6.3% during December, while the unemployment has decreased by 14K, more than anticipated.

    Next of relevance for the cross will be UK’s Construction PMI seconded by EMU’s flash inflation figures during December.

    EUR/GBP levels to consider

    As of writing the cross is down 0.20% at 0.7340 and a breach of 0.7299 (61.8% Fibo of 0.7496-0.6979) would expose 0.7257 (100-day sma) and then 0.7189 (55-day sma). On the other hand, the initial resistance lies at 0.7420 (high Jan.4) followed by 0.7496 (high Oct.13) and finally 0.7600 (psychological level).
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