EUR/GBP hits fresh 5-week highs near 0.7390

FXStreet (Mumbai) – The British pound was smashed by the shared currency in the European morning, sending EUR/GBP to fresh session highs just shy of 0.74 barrier. The cross edged higher largely on sterling weakness as traders now focus on the UK trade balance data which is expected to disappoint markets.

EUR/GBP supported at 0.7350

Currently, the EUR/GBP cross trades 0.32% higher at 0.7383, hovering close to 0.7389 fresh five week highs. The cross in EUR/GBP climbs climbed higher, supported by broad GBP weakness as traders anticipate a negative UK trade balance print.

The UK is expected to report a negative trade balance of £2.7 billion for April, compared to the negative £2.817 billion balance in March.

Moreover, the pound also remains undermined following Moody’s warning on the UK economy, adding to the upside in EUR/GBP.

On the other hand, the shared currency erased gains and trades muted versus the US dollar ahead of Euro zone Q1 GDP revisions which may provide further incentives on the cross.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7360 (June 3 High) and above which it could extend gains to at 0.7420 (May 1 High) levels. To the downside immediate support might be located at 0.7266 (Today’s Low) levels below that at 0.7248 (June 3 Low) levels.

The British pound was smashed by the shared currency in the European morning, sending EUR/GBP to fresh session highs just shy of 0.74 barrier. The cross edged higher largely on sterling weakness as traders now focus on the UK trade balance data which is expected to disappoint markets.

(Market News Provided by FXstreet)