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EUR/GBP clinches to 0.8000

FXStreet (Edinburgh) - A weaker pound combined with a neutral euro is helping EUR/GBP to regain the 0.8000 psychological handle on Tuesday.

EUR/GBP firmer post-UK data

The cross extended its intraday correction higher following the releases in the British economy, where consumer prices expanded at an annual pace of 1.5% and 0.4% inter-month during August, matching previous estimates. Core prices ticked a tad higher to 1.9% over the last twelve months vs. 1.8% expected and previous. All eyes are now on the ZEW Survey in Germany and the euro area, where lower readings are expected. “GBP should remain very nervous ahead of the Scottish referendum on Thu. A “no” win should see EUR/GBP quickly through 0.79 while GBP/USD could return to 1.65-1.66 in short order”, signaled strategists at Westpac Global Strategy Group.

EUR/GBP levels to watch

As of writing the cross is up 0.39% at 0.8004 with the immediate resistance at 0.8018 (100-d MA) followed by 0.8066 (high Sep.10) and then 0.8074 (38.2% of 0.8400-0.7874). On the flip side, a breakdown of 0.7953 (55-d MA) would open the door to 0.7941 (low Sep.12) and finally 0.7935 (low Sep.8).

GBP/USD had to ignore inflation data on no surprises

GBP/USD slid to 5-day low at 1.6160 just before the CPI release, and hardly moving post data.
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