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EUR/GBP sold-off at 4-month highs, back below 0.7400

FXStreet (Mumbai) - The cross in the EUR/GBP retraced quickly from fresh four-month highs and now pushes lower below 0.74 handle amid renewed strength in the GBP/USD pair, after the UK mortgage approvals hit the highest levels since Jan 2014 while the net credit figures soared to a seven-year high.

EUR/GBP rejected at 0.7437

Currently, the EUR/GBP pair falls -0.24% to fresh session lows of 0.7392, completely fading a spike to 0.7437 – multi-month highs. The EUR/GBP cross was hammered through the 0.74 handle as the pound picked-up significant strength and rose above 1.52 handle versus the US dollar following a set of upbeat UK macro releases.

The number of mortgage approvals in the UK increased most since January 2014 to 71,030 in August, opposed to 69,010 in July, beating market expectations. Meanwhile, the Net Lending to Individuals increased by GBP19.6 billion - the highest level since May 2008.

Moreover, the losses in EUR/GBP were also accelerated as the EUR/USD pair erased gains and edged lower amid a modest recovery seen in the European stocks.

Meanwhile, focus now shifts towards the UK CBI realized sales figures and BOE Governor Carney's speech due later today for further momentum.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7437 (Today’s High) levels and above which it could extend gains to 0.7487 (May Highs) levels. To the downside immediate support might be located at 0.7333 (Sept 28 Low) below that at 0.7292 (Sept 11 Low).

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