28 Apr 2015
EUR/GBP jumps to fresh highs at 0.7170 on UK data
FXStreet (Mumbai) - The British pound got smashed by the shared currency in the European morning; driving EUR/GBP to fresh session highs, after sterling plunged nearly 30 pips after UK’s economy slowed in the first quarter, missing market expectations, dragged down by services sector growth.
EUR/GBP turn in green post UK data
Currently, the EUR/GBP cross trades 0.24% higher at fresh session highs at 0.7170, turning positive on poor UK data. The cross in EUR/GBP erased previous losses and rallied to session highs largely after the pound took a beating on the release of worse than expected UK Q1 2015 growth numbers.
The first estimate of first-quarter growth in the UK showed a slowdown in the first quarter, below expectations, to 0.3% compared with a growth of 0.6% in Q4 2014, following a slight but disappointing rise in just the services sector.
On the other hand, the shared currency remains muted versus the US dollar, consolidating previous gains. Meanwhile, markets await US macro data due later in the day for further momentum on the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7200 and above which it could extend gains to at 0.7225 levels. To the downside immediate support might be located at 0.7114 (April 23 Low) levels below that at 0.7090 (March 16 Low) levels.
EUR/GBP turn in green post UK data
Currently, the EUR/GBP cross trades 0.24% higher at fresh session highs at 0.7170, turning positive on poor UK data. The cross in EUR/GBP erased previous losses and rallied to session highs largely after the pound took a beating on the release of worse than expected UK Q1 2015 growth numbers.
The first estimate of first-quarter growth in the UK showed a slowdown in the first quarter, below expectations, to 0.3% compared with a growth of 0.6% in Q4 2014, following a slight but disappointing rise in just the services sector.
On the other hand, the shared currency remains muted versus the US dollar, consolidating previous gains. Meanwhile, markets await US macro data due later in the day for further momentum on the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7200 and above which it could extend gains to at 0.7225 levels. To the downside immediate support might be located at 0.7114 (April 23 Low) levels below that at 0.7090 (March 16 Low) levels.