FXStreet (Edinburgh) – The softer footing around the sterling is now prompting EUR/GBP to test the upper end of the range near 0.7500 the figure.
EUR/GBP focus on UK data
The European cross is recovering part of yesterday’s deep pullback as GBP sellers seem to be cashing up part of Monday’s gains. Absent releases in Euroland today, the focus of attention will be the UK docket, where Industrial and Manufacturing Production will take centre stage early in the morning, followed by Governor M.Carney’s speech and the NIESR GDP Estimate.
The buying interest around the British pound coupled with the initial weakness in EUR at the beginning of the week has dragged the cross to lows near 0.7440 on Monday, although losses were lately reverted by dip-buying in the mid-0.7400s.
EUR/GBP levels to consider
As of writing the cross is up 0.47% at 0.7496 and a breakout of 0.7595 (high Feb.3 2015) would expose 0.7715 (high Jan.21 2015) and then 0.7875 (2015 high Jan.6). On the other hand, the initial support lines up at 0.7378 (1-month uptrend) followed by 0.7267 (100-day sma) and finally 0.7215 (200-day sma).
(Market News Provided by FXstreet)