FXStreet (Mumbai) – The cross in the EUR/GBP is seen posting minor losses in early Europe, consolidating in a tight range below hourly 50-SMA at 0.7268 since mid-Asia.
EUR/GBP faces strong resistance at 0.7270 region
Currently, the EUR/GBP pair trades -0.17% lower at 0.7261, hovering above 0.7250 levels. The cross is seen oscillating back and forth in a slim range amid calm markets as dust settles over the Fed rate hike.
While broad based US dollar strength remains the theme so far, EUR/USD suffers more as compared to the cable, as the policy divergence between the Fed and ECB got pronounced after Wednesday’s Fed lift-off by 25bps.
In the day ahead, the German Ifo business climate and the retails sales from the UK docket may have limited impact on the cross.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7277 (daily pivot), above which it could extend gains to 0.7300 (round number). To the downside immediate support might be located at 0.7239 (100–DMA) below that at 0.7196 (200-DMA).
(Market News Provided by FXstreet)