FXStreet (Edinburgh) – The increasing weakness around the single currency is quickly dragging EUR/GBP to test session lows in the mid-0.7200s.
EUR/GBP lower on GBP-buying
The bid tone around the sterling keeps growing bigger in the first half of the week, collaborating with the daily decline in the cross to levels last seen in late August. In addition, EUR has reverted the optimism seen earlier during the Asian trading hours, in spite of the buoyant results from the external sector in both Germany and EMU.
Ahead in the week, UK’s Industrial and Manufacturing Production and Trade Balance results will see the light tomorrow followed by the NIESR GDP Estimate and the BoE MPC meeting and minutes on Thursday.
EUR/GBP key levels
At the moment the cross is losing 0.76% at 0.7254 and a breach of 0.7200 (psychological level) would aim for 0.7151 (low Aug.21) and finally 0.7091 (low Aug.20). On the other hand, the initial up barrier lines up at 0.7376 (high Sep.3) ahead of 0.7398 (high Sep.2) and then 0.7423 (high Aug.24).
(Market News Provided by FXstreet)