EUR/GBP Attempts Recovery After Weak UK Data
The recovery in the EUR/GBP pair is gathering pace after the UK trade
deficit figure printed higher than estimates, while manufacturing
production contracted sharply.
Trades around 0.8070
The
cross hovers around 0.8070 from the pre-data level of 0.8050 as Cable
trimmed gains after manufacturing production in February fell far more
than expected – 1.1% m/m and 1.8% y/y. Furthermore, UK’s goods trade
deficit also rose more than expected to GBP 11.964 billion.
The
pair fell to a session low of 0.8047 ahead of the data release as
GBP/USD rose to 1.4141 levels amid oil price rally and resulting risk-on
in equities.
EUR/GBP Technical Levels
Acceptance
above the immediate hurdle at 0.8077 (hourly 50-MA) would open doors
for a re-test of 0.81 handle. Next major resistance stands at 0.8117
(Apr 7 high). On the other hand, a breakdown of immediate support at
0.8042 would shift risk in favor of a drop to 0.80. A violation there
would expose 0.7975 (hourly 200-MA).
(Market News Provided by FXstreet)
