EUR/GBP Breaks Through 0.7800 Strong Resistance
The EUR/GBP rose to session high of 0.7809 before retracing slightly back to the very important 0.7800 handle.
The
current EUR strength is backed by better-than-expected EU GDP data that
provided the required boost to lift the pair above 0.7800 mark.
However, concerns over falling inflation in the Euro-zone remains key
headwind for the common currency, EUR, thus could possibly cap any
further up-move for the EUR/GBP pair.
Technical levels to watch
Above
0.7800 handle, the pair would be eyeing to test its immediate
resistance near weekly high level of around 0.7811-14 region. A follow
through buying interest beyond this immediate resistance has the
potential to continue boosting the pair towards its next resistance near
0.7825-26 level.
On the downside, hourly resistance break level
near 0.7790 area now seems to extend immediate support for the pair.
However, weakness back below 0.7790 level is likely to drag the pair
back towards 0.7765-60 support area.
