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).
