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EUR/GBP eyes 0.7950 post-data

FXStreet (Edinburgh) - Softer than expected consumer prices in the UK economy are weighing on the sterling on Tuesday, pushing EUR/GBP to the upper band of the intraday range near 0.7950.

EUR/GBP boosted by CPI

Consumer prices in the British economy rose at an annual pace of 1.2% during September, missing forecast for a 1.4% gain and down from 1.5%; on a monthly basis, prices came in flat vs. 0.2% expected. Further data showed producer prices following the same tone, adding to the downbeat sentiment. “Key resistance is the 2 year pivot line and the 2013-2014 downtrend at .8071/77 – while capped here we are overall negative”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.

EUR/GBP levels to watch

As of writing the cross is up 0.17% at 0.7941 with the next resistance at 0.7957 (100-d MA) and then 0.7968 (high Sep.17). On the downside, a break below 0.7870 (10-d MA) would aim for 0.7867 (Tenkan Sen).

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