FXStreet (Mumbai) – The EUR/GBP pair fell to a low of 0.7195 levels on Friday after German Chancellor Angela Merkel expressed concerns regarding the strength in the Euro.
Trades below 50-DMA
The pair extended early losses to trade well below its 50-DMA located at 0.7224 levels. The initial weakness was triggered by news that IMF exited talks with Greece, as both the parties had major differences over pensions and taxes. Consequently, the pair turned lower from the daily high of 0.7255.
The losses were extended further to a low of 0.7195 after Merkel said that too much strength in the Euro would limit the effectiveness of reforms in Spain and Ireland. At the moment, the pair is trading at 0.7212, down 0.54% on the day.
EUR/GBP Technical Levels
The immediate support is located at 0.7195, under which the pair could target 0.7144. On the flip side, a break above 0.7224 (50-MA), could see the pair re-test 0.7244 (100-MA).
(Market News Provided by FXstreet)