EUR/GBP hit one-month high, trades above 50-DMA

FXStreet (Mumbai) - The better-than-expected flash PMI report in Germany pushed the EUR/GBP pair to a one-month high of 0.7350.

EUR/GBP: Trades above 50-DMA

The pair rose above the 50-DMA located at 0.7328 in anticipation of a strong data. Post the release the pair extended gains by a few pips to hit a high of 0.7350. Moreover, German private sector activity rising to eight month high supports ECB president Draghi’s view that the Eurozone economy as a whole is seeing signs of recovery.

Further confirmation of the economic recovery is awaited in the form of flash Eurozone PMI report due for release in a few minutes.

EUR/GBP Technical Levels

The pair currently trades at 0.7348, up 0.38% for the day. The immediate resistance is seen at 0.7402 (Jan. 25th low), above which gains could be extended to 0.7440. On the flip side, a break below 0.7328 (50-DMA) could push the pair down to 0.7272.

EUR/USD testing 1.10 on upbeat German data

EUR/USD rallied to fresh session highs beyond 1.0995 levels in the mid-European session, as the shared currency was boosted against the US dollar after the German manufacturing and services gauges rose above estimates in March.
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SEB: EUR/USD might see further correction higher – eFXnews

The eFXnews Team notes SEB views that EUR/USD might see an extended period of consolidation or a decent correction higher.
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