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EUR/GBP gains as European stocks drop

FXStreet (Mumbai) - The bid tone around the EUR improved, sending the EUR/GBP higher after the major European stock markets dropped in early trading.

Bullish break on charts

The pair witnessed a bullish break from the inverted head and shoulder formation on the daily chart on Tuesday. The pair did re-test the neckline support around 0.7440s before moving higher in early Europe on the back of the weakness in the stock markets. The pan-European Euro Stoxx 50 index weakened 1%.

The focus now shifts to the UK monthly employment and wage growth figures. The Eurozone industrial production figures could also attract traders’ attention.

EUR/GBP Technical Levels

The pair hit a high of 0.7475 levels before easing slightly to trade around 0.7468. The immediate resistance is located at 0.75, above which gains could be extended to 0.7592 (Feb 2 low). On the lower side, support is seen at 0.7441 (inv head and shoulder neckline), under which the pair could drop to 0.74.

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