EUR/GBP nears 0.7 handle, ignores German IFO

FXStreet (Mumbai) - The EUR/GBP now trades just few pips away from 0.7 handle as the bid tone around Sterling continues to gather pace on the back of an uptick in core inflation.

Fresh three month lows

The cross fell to a fresh three month low of 0.7005, before recovering slightly to trade around 0.7012 levels. The second wave of buying in Sterling following an uptick in core inflation overshadowed a slight improvement in the German IFO economic sentiment.

The next on the cards is the Eurozone IFO survey and the monthly US CPI figure.

EUR/GBP Technical Levels

The immediate resistance is located at 0.7040 (Nov 12 low), above which gains could be extended to 0.7065 (5-DMA). On the other side, support is seen at 0.70 and 0.6950 (Aug 5 low).

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