EUR/GBP Extends Rebound Towards 0.79 on Weak UK Data

EUR/GBP Extends Rebound Towards 0.79 on Weak UK Data

21 April 2016, 11:06
Roberto Jacobs
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EUR/GBP Extends Rebound Towards 0.79 on Weak UK Data

The EUR/GBP cross caught a fresh bid-wave and now looks to test 0.79 barrier following the release of poor UK retail sales data, which dropped for the second month in March.

EUR/GBP extends higher on GBP weakness

Currently, the EUR/GBP pair trades 0.11% higher at 0.7890, reversing a dip from near three-week lows of 0.7864. The EUR/GBP’s recovery from multi-week lows gained further traction in the last hour, after the UK retail volumes disappointed big time and weighed negatively on the British pound.

The UK's retail sales for March dropped sharply to -1.3% m/m, down from -0.5% booked in February. The yearly print decelerated from 3.6% to 2.7%.

On the EUR-side of the equation, the cross finds little incentive from the main currency pair in wake of increased nervousness ahead of the crucial ECB policy decision due to be announced later this session.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7912/39 (10-DMA & 20-DMA), above which it could extend gains to 0.8000 (psychological levels). To the downside immediate support might be located at 0.7866/64 (three-week lows) below that at 0.7825 (Mar 29 Low).


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