- EUR/GBP was hammered below the 0.74 handle, following the release of the UK’s GDP report and the current account data
- ONS data showed that the UK’s GDP stood solid at 0.7% q/q in Q2, while the current account deficit narrowed to GBP16.8 billion, down from a revised deficit of GBP24 billion in Q1
- EUR/GBP cross accelerated to the downside as the pound was boosted across the board after the data
- The pair hit session lows at 0.7387, but has pared some losses and currently hovers around the 0.74 handle
- Eurozone unemployment rate and the headline CPI number were worse than consensus, but EUR largely muted post data
- CPI contracted at an annual pace of 0.1% vs. forecasts for a flat reading and down from July’s 0.1% advance. The core print stayed put at 0.9%, matching estimates
- Resistance for EUR/GBP is located at 0.7431 (Today’s High), above which it could extend gains to 0.7487 levels (May highs)
- To the downside immediate support might be located at 0.7333 (Sept 28 Low) below that at 0.7292 (Sept 11 Low)
The material has been provided by InstaForex Company – www.instaforex.com