EUR/GBP Hits Fresh Session Highs Near 0.7810 Post-IFO
The EUR/GBP cross
keeps the bid tone intact following the release of the German Ifo
surveys, which showed a slight deterioration in the business sentiment.
EUR/GBP holds above 0.78 handle
Currently,
the EUR/GBP pair trades 0.33% higher at fresh session highs of 0.7812,
having found strong bids at 0.7775. The EUR/GBP cross clinched gains as
the shared currency paid little attention to below estimates Ifo
readings from Euro zone’s economic powerhouse, Germany.
The
Business Climate Index worsened slightly to 106.6 points in April, from
106.7 before, while the market had forecast a rise to 107.1 points. The
Ifo Current Assessment Index hit 113.2 points, after 113.8, while the
Ifo Expectations gauge booked 100.4 points, following March's 100,
coming in weaker than 100.9 points expected.
However, the renewed
strength in the cross is as a result of fresh selling seen in cable, as
European stocks dive deeper into red and curb the demand for risk
currencies such as the GBP. Looking ahead, markets will continue to
digest the latest German data ahead of the US new home sales data, while
the broader market sentiment will play a crucial role going forward.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7828/ 39 (5-DMA/ 1h 50-SMA), above which it could extend gains to 0.7880/0.7900 (10-DMA/ psychological levels). To the downside immediate support might be located at 0.7775 (session lows) below that at 0.7759/54 (daily S1/ daily low).
