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EUR/GBP testing lows in 0.7880

FXStreet (Edinburgh) - Choppy session for EUR/GBP so far, now testing intraday lows around 0.7880/75 after hitting tops near 0.7920 during the European morning.

EUR/GBP depressed by stronger GBP

The sterling is trading on the right footing at the end of the week, bolstered by GDP figures in line with expectations for the third quarter, expanding 0.7% inter-quarter and 3.0% on a yearly basis. On the other hand, the demand for the single currency remains subdued, following the ECB headlines on Wednesday. “It is possible that we will see a retest of major support at .7757/44, (the mid-August 2012 low and the 50% retracement of the entire move up from 2000 to 2008), but if seen we look for this to again hold and suspect that this will take several attempts to break”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.

EUR/GBP levels to watch

The cross is now retreating 0.13% at 0.7878 with the next support at 0.7871 (low Oct.23) ahead of 0.7851 (low Oct.10) and then 0.7833 (76.4% of 0.7767-0.8046). On the flip side, a break above 0.7917 (high Oct.23) would target 0.7924 (10-d MA) en route to 0.7926 (high Oct.22).

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