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EUR/GBP revisits daily highs above 0.72 on UK data

FXStreet (Mumbai) - The EUR/GBP cross re-attempted to surpass the daily highs reached above 0.72 barrier, after the pound dropped sharply in response to the below estimates prelim GDP numbers from the UK.

EUR/GBP rises from 0.7190 post data

Currently, the EUR/GBP pair trades 0.06% higher at 0.7206, retesting strong hurdle placed at 0.7211 levels. The EUR/GBP cross swung back in the green, after the pound was hammered against the shared currency following slower than expected expansion in the UK growth numbers.

The UK economy slowed to a growth of 0.5% in Q3 from 0.7% measured in Q2, prelim estimate showed on Tuesday. On yearly basis also slowed to 2.3% - the weakest reading since Q3 2013.

While the upside remains capped on the back of EUR/USD weakness as Euro zone money supply data disappointed while European stocks are seen recouping losses.
Looking ahead, the cross will be influenced by a series of US data releases and the sentiment on the Wall Street.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7220/19 (100 + 200-DMA), above which it could extend gains to 0.7234 (5-DMA + Oct 23 High). To the downside immediate support might be located at 0.7179 (daily S1) below that at 0.7148 (Aug 21 Low).

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