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EUR/GBP turns negative below 0.7400

FXStreet (Edinburgh) - A bout of buying interest around the sterling has sent EUR/GBP to test the area of session troughs in the 0.7400/0.7390 band.

EUR/GBP lower on M&A chatter

The decline in the cross is now picking up pace fuelled by market chatter on the M&A sector, where AB InBev has come to an agreement to take over SABMiller at £44 per share.

Still in the UK, inflation figures are due later followed by the German/EMU ZEW Survey. Consensus see consumer prices in the UK economy to come in flat during last month, while October’s ZEW indicator is expected to deflate from previous prints.

EUR/GBP relevant levels

As of writing the cross is down 0.03% at 0.7398 with the next support at 0.7362 (up trend from September low) followed by 0.7300 (55-d sma/psychological level) and then 0.7196 (monthly low Sep.22). On the upside, a surpass of 0.7442 (high Oct.2) would expose 0.7483 (high May 7) and finally 0.7500 (psychological handle).

GBP/USD offered at 1.5368 but bulls remain in control

The bid tone on the GBP gathered pace in early Europe, pushing the GBP/USD pair to a session high of 1.5368, before it backed off slightly to trade around 1.5360.
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GBP/USD continues to find strong M&A related flows to set a fresh session high of 1.5375, up from its Asian low at 1.53.
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