FXStreet (Edinburgh) – After climbing near 0.7530, EUR/GBP has now deflated to the boundaries of the key support at 0.7500.

EUR/GBP rebounds from 0.7470

The initial strong momentum in the sterling has prompted the European cross to extend the daily correction to session lows near 0.7470. However, a wave of renewed selling interest in GBP has helped the cross to bounce off troughs and spike to the 0.7530 area, briefly recovering the positive territory.

Poor Industrial Production results in the euro area have given the shared currency further reasons for the daily retreat, while the BoE is slowly coming into focus ahead of tomorrow’s ‘Super-Thursday’.

EUR/GBP levels to consider

As of writing the cross is down 0.15% at 0.7505 with the next support at 0.7380 (1-month uptrend) followed by 0.7267 (100-day sma) and finally 0.7215 (200-day sma). On the other hand, a surpass of 0.7595 (high Feb.3 2015) would expose 0.7715 (high Jan.21 2015) and then 0.7875 (2015 high Jan.6).

After climbing near 0.7530, EUR/GBP has now deflated to the boundaries of the key support at 0.7500…

(Market News Provided by FXstreet)

By FXOpen