FXStreet (Mumbai) – EUR/GBP broke the consolidative mode and dipped below 0.71 handle in the European morning, as the pound received fresh impetus from better than expected UK first quarter GDP print mainly due to changes introduced to the construction sector output by ONS.
EUR/GBP drops from 0.7107
Currently, the EUR/GBP pair trades -0.62% lower at 0.7098, hovering close to fresh session lows reached at 0.7094 shortly after the data release. The cross in EUR/GBP fell further into losses after sterling erased gains versus the US dollar in reaction to the upbeat UK economic growth numbers.
The UK economic performance in the first quarter was slightly stronger than first estimated, rising 0.4% q/q, revised up by one percentage point from the previous two estimates, while the annual growth was boosted by five percentage points to 2.9%.
However, it’s worth noting that the primary reason for both quarterly and annual revisions were changes the ONS introduced to the construction sector output.
On the EUR side, the shared currency remains pressured across the board amid lack of fresh updates from Greece front heading into today’s deadline while broadly stronger USD also keeps the euro lower.
Later in the session, markets await Euro zone CPI and jobs data for further insights on the cross. While Greece headlines will remain in focus.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7133 (Today’s High) levels and above which it could extend gains 0.7180 (June 23 High) levels. To the downside immediate support might be located at 0.7078 (June 23 Low) below that at 0.7053 (May 27 Low) levels.
(Market News Provided by FXstreet)