The EUR/GBP failed to take out 5-DMA at 0.7738 levels in early Europe even though the German factory orders data beat estimates.
Threatens to turn red
At 0.7727, the cross is trading largely unchanged on the day and is threatening to drop into losses. Rally in oil prices and the resulting stability in the markets is keeping the EUR under pressure. Furthermore, the expectations of more aggressive ECB easing are also keeping the EUR bulls at the bay.
However, the losses are being restricted; given the Sterling bulls are sitting on the sidelines in anticipation of dovish comments from BOE officials during their speech on Brexit tomorrow.
EUR/GBP Technical Levels
The immediate hurdle is seen at 0.7738 (5-DMA), above which the pair could target 0.7803 (10-DMA). On the other hand, a breakdown of 0.7681 (23.6% of 0.6981-0.7897), would shift risk in favor a drop to 0.7642 (50-DMA).
(Market News Provided by FXstreet)
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