FXStreet (Mumbai) – The EUR/GBP cross has recovered slightly from the daily low of 0.7010 ahead of the data in the UK, which could show the UK economy exited deflation in October.
Uptick in stocks capping recovery
The gains in the European stocks are capping the demand for the EUR. Meanwhile, the GBP/USD is being offered ahead of the UK CPI data, which is seen coming-in at 0.1%m/m and -0.1% y/y. The traders could be more interested to see whether the core inflation is holding up well in light of labor market tightening and wage gains.
The cross currently trades around 0.7025 levels. Later today, the German and Eurozone Zew survey number could also influence the pair.
EUR/GBP Technical Levels
The immediate resistance is located at 0.7040 (Nov 12 low), above which gains could be extended to 0.7065 (5-DMA). On the other side, support is seen at 0.70 and 0.6950 (Aug 5 low).
(Market News Provided by FXstreet)