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EUR/GBP drops below 0.73 after UK data

FXStreet (Mumbai) - The bid tone on the GBP strengthened after the UK retail sales blew past expectations, sending the EUR/GBP pair to an intraday low of 0.7295.

Hovers around 0.73

The cross now hovers just above 0.73 handle as investors await the ECB meet. The 20-pip drop from 0.7315 to 0.7295 was triggered by a 6.5% y/y rise in the September UK retail sales. The EUR was already on the back foot on account of the last minute selling ahead of the ECB.

It remains to be seen if the markets continue to ditch EUR, sending the pair towards a strong support around 0.7260 or traders wait on the sidelines, ensuring the cross stays around 0.73 as we head into the ECB event.

EUR/GBP Technical Levels

The immediate support is seen at 0.7295 (daily low), under which the pair could drop to 0.7260 (trend line support seen on the monthly chart)-0.7255 (200-DMA). On the higher side, a break above 0.7315 (50-DMA)-0.7333 (Oct 7 low) would expose 10-DMA at 0.7372 and 0.74 handle.

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