EUR/GBP attempting to build on to its recovery above 0.7600

By FXStreet The EUR/GBP pair held its neck above yesterday’s low and inched to a fresh session high level of 0.7607 after some mixed data from the UK.

According to the data released just a while ago, UK GDP registered 2% y-o-y growth, which was below expectations of 2.1%. Meanwhile, the q-o-q growth matched consensus forecast and initial estimate of 0.4% growth. In other data, UK Prelim Business Investment dropped -0.5% from previous quarter, below expectations of an increase of 3.2%.

A slightly disappointing data had a muted reaction as the ‘Brexit’ remains the key fundamental risk for the ongoing bullish momentum in the British Pound. Meanwhile, after dropping into negative territory, the EUR/GBP pair recovered from lows and is now attempting to build on to its recovery above 0.7600 handle.

Technical levels to watch

From current levels, the pair seems to extend its recovery towards 0.7635-40 horizontal resistance, above which the up-move could further get extended towards the very important 0.7700 handle.

Conversely, failure to build on to its gains above 0.7600 level and a subsequent drop below Wednesday’s low support near 0.7565 would make it vulnerable to extend its weakening trend towards testing the very important 200-day SMA support near 0.7520 level.
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Source:: FX Street