EUR/GBP falls back below 0.70 handle

FXStreet (Mumbai) - The EUR trimmed gains in the European session, taking the EUR/GBP pair back below 0.70 handle and closer to previous session’s low at 0.6983.

Rejected again at hourly 50-MA

The pair once again failed to sustain above its hourly 50-MA; its fifth consecutive failure since Nov 9. The pattern is similar to the one seen in the EUR/USD pair; which is also repeatedly failing to rise above 4-hour 50-MA since Oct 20th.

The immediate focus is now on the UK retail sales figure, which is expected to show the household spending contracted in October.

EUR/GBP Technical Levels

The immediate resistance is seen at 0.7002 (hourly 50-MA), above which the pair could target 0.7025 (hourly 100-MA) and 0.7060 (hourly 200-MA). On the other side, a failure to sustain above 0.70 handle could see the pair revisit previous day’s low of 0.6981.