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EUR/GBP: spike in Sterling quickly erased

FXStreet (Mumbai) - Sterling saw a modest spike on the back of a strong UK construction PMI, pushing the EUR/GBP pair to a low of 0.7355, before recovering to trade around 0.7365 levels.

Rejected at 0.74

The EUR/GBP pair was rejected earlier today at 0.7397 following which it fell to 0.7370 and extended losses further after the UK construction PMI rose to a 7-month high in September. Though the pair has recovered slightly from its daily lows, it is largely unchanged on the weekly basis.

Whether the pair will end the week with gains or losses depends on the US non-farm payrolls report due for release later today.

EUR/GBP Technical Levels

The immediate resistance is located at 0.7400 (weekly 50-MA), above which the gains could be extended to 0.7436 (weekly high). On the other side, support is seen at 0.7350 (10-DMA) and 0.7227 (50-DMA).

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