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21 May 2015
EUR/GBP dips to lows at 0.7130 on upbeat UK data
FXStreet (Mumbai) - EUR/GBP wiped out gains and turned in red during the European session, after the pound received a fresh impetus from impressive retail sales data from the UK, dragging the cross to fresh session lows.
EUR/GBP falls further post UK data
Currently, the EUR/GBP cross trades -0.09% lower at 0.7133, testing fresh session lows at 0.7130 reached after the UK data release. The British pound regained lost ground and climbed higher against the shared currency after UK retail sales both including and excluding fuel rose sharply above estimates.
UK retail sales, both including and excluding fuel increased by 1.2%. Figures showed a growth in sales in all areas except food stores where sales fell by 0.1%. with the highest rise in sales was in clothing and footwear which was up 5.2%, the highest since April 2011.
However, the downside remains cushioned as the cross received support from broad euro strength following upbeat EMU manufacturing PMI report. Traders now eye ECB meting accounts and EU Summit for further incentives on the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7186 (Today’s High) and above which it could extend gains to at 0.7200 levels. To the downside immediate support might be located at 0.7150 levels below that at 0.7138 (May 11 Low) levels.
EUR/GBP falls further post UK data
Currently, the EUR/GBP cross trades -0.09% lower at 0.7133, testing fresh session lows at 0.7130 reached after the UK data release. The British pound regained lost ground and climbed higher against the shared currency after UK retail sales both including and excluding fuel rose sharply above estimates.
UK retail sales, both including and excluding fuel increased by 1.2%. Figures showed a growth in sales in all areas except food stores where sales fell by 0.1%. with the highest rise in sales was in clothing and footwear which was up 5.2%, the highest since April 2011.
However, the downside remains cushioned as the cross received support from broad euro strength following upbeat EMU manufacturing PMI report. Traders now eye ECB meting accounts and EU Summit for further incentives on the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7186 (Today’s High) and above which it could extend gains to at 0.7200 levels. To the downside immediate support might be located at 0.7150 levels below that at 0.7138 (May 11 Low) levels.