FXStreet (Mumbai) – The shared currency stalled its upward rally versus its British counterpart in the European morning, with EUR/GBP easing-off fresh two week highs above 0.72 barrier. The cross retreated from session highs after euro received a blow from worse-than estimates German unemployment change numbers.
EUR/GBP drops from 0.7227
Currently, the EUR/GBP cross trades 0.31% higher at 0.7212, having previously posted fresh session highs at 0.7227. The cross in EUR/GBP firmed this session largely on broad euro strength, although took a breather in its rally after below estimates German unemployment data which dragged the single currency from session highs.
The reported figure revealed a decrease of 6,000 registered unemployed in May, after a revised 9,000 fall posted in April, official data showed. The reading came in worse than estimates of a 10,000 drop. The unemployment rate remained untouched at 6.4% in May.
On the other hand, the pound keeps losses versus the US dollar ahead of UK’s construction PMI data. The pound remains pressured following Monday’s downbeat UK’s manufacturing PMI report.
Looking ahead, markets will now focus on UK construction PMI while EZ CPI figures are also eagerly anticipated.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7232 (May 19 High) and above which it could extend gains to at 0.7258 (May 11 High) levels. To the downside immediate support might be located at 0.7179 (Today’s Low) levels below that at 0.7142 (June 1 Low) levels.
(Market News Provided by FXstreet)