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EUR/GBP off highs, around 0.7460 post ZEW

FXStreet (Mumbai) - The EUR/GBP cross re-attempted fresh session highs above 0.7470 levels, although quickly retreated to familiar ranges after the German ZEW figures came in at the lowest level since Oct 2014.

EUR/GBP hovers above 0.7450 levels

Currently, the EUR/GBP pair rises 0.80% to 0.7461, fading a spike to 0.7474 on the data release. The bid tone on the EUR took a hit, sending EUR/GBP slightly lower, as the German economic sentiment deteriorated worse-than expectations.

The headline ZEW confidence index came in at 1.9 points in October, sharply lower from last month's 12.1 points, missing a 6.8 reading expected.

However, the downside remains cushioned mainly driven by sterling weakness, after deflation gripped the UK economy again in September. The UK CPI y/y slipped back into deflationary territory by 0.1% in September from the previous flat growth.

The cross will now track the sentiment on the markets and await the key employment report from the UK for fresh cues.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7474 (Today’s High), above which it could extend gains to 0.7500 (psychological levels). To the downside immediate support might be located at 0.7412 (50-SMA, 20-SMA confluence on H1) below that at 0.7394 (10-DMA).

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