EUR/GBP approaches weekly highs as pound tumbles

By FXStreet FXStreet (Córdoba) – EUR/GBP printed a fresh daily high at 0.7295 and then bounced to the downside, but it remains on positive territory for the day and holding a bullish tone. A decline of the pound across the board pushed the pair to the upside.

Despite a better-than-expected retail sales report in the United Kingdom, the pound is among the worst performer in the currency market with GBP/USD trading at 8-month lows below 1.4900.

EUR/GBP still capped by 0.7300

The recent rally lost strength when the pair approached 0.7300. The mentioned area capped the upside during the previous three trading days. A clear break of the 0.7300 area could open the doors to more gains.

In the short term, to the downside the immediate support could be seen at 0.7260/65, where the 20-hour MA stands, below the next level to watch is the daily low at 0.7230/35 followed by 0.7200/05 (Dec 12, 13 & 14 low).

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Source:: FX Street