FXStreet (Mumbai) – The cross in the EUR/GBP accelerates losses and dropped to fresh weekly lows in the European morning following the release of second quarter Euro zone GDP data.
EUR/GBP drops further below 0.7300
Currently, the EUR/GBP pair trades -0.66% lower at fresh one-week lows of 0.7261, now heading towards 0.7250 – key levels. The EUR/GBP cross keeps pushing lower as the EUR bulls remained unimpressed by the Eurozone GDP figures which showed that the 19-nation bloc saw an unchanged pace of expansion in the second quarter.
The composite GDP data of all 19 members of the euro area saw a 0.4% expansion q/q in Q2 2015, the Eurostat showed on Tuesday. Compared with the same quarter of the previous year, the GDP in euro area rose 1.5% in the quarter ending in June.
The cross remains heavily offered largely on the back of strengthening pound versus the greenback as investors reduced USD longs on decreasing odds for Sept Fed rate hike in wake of escalating concerns over China’s economy and its impact on the financial markets.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located at 0.7243 (Aug 31 Low) below that at 0.7200 (Psychological levels).
(Market News Provided by FXstreet)