EUR/GBP Keeps Highs Near 0.7880 on German GDP
EUR/GBP is posting moderate gains at the end of the week, although a clear break above the 0.7900 handle still remains elusive.
EUR/GBP muted post-data
The cross remained apathetic following the release of the final CPI
figures in Germany for the month of April, with consumer prices
contracting 0.1% inter-month and 0.4% over the last twelve months. The
broader HICP showed prices dropped 0.5% MoM and 0.3% on a yearly basis.
Further data saw mixed advanced German GDP results, showing the economy
has expanded at an annualized pace of 1.5% and 0.6% QoQ during the
second quarter.
In the meantime, the cross remains in a sideline pattern amidst absence
of relevant catalysts or events, meandering between 0.7850 and 0.7950.
EUR/GBP key levels
The cross is now up 0.37% at 0.7874 facing the next hurdle at 0.7947
(high May 4) ahead of 0.7995 (high Apr.18) and then 0.8119 (2016 high
Apr.7). On the flip side, a breach of 0.7760 (100-day sma) would expose
0.7731 (low Apr.26) and finally 0.7497 (200-day sma).
