EUR/GBP continues to retreat and drops toward 0.7400

By FXStreet FXStreet (Córdoba) – EUR/GBP dropped further during the US session and moved toward 0.7400. The pair erased yesterday’s gains and is pulling back dangerously.

EUR/GBP up and down

Yesterday a lower-than-expected reading on UK CPI boosted the pair, that jumped after breaking above the 0.7430/40 resistance area. It peaked at 0.7492, the highest level since February. Afterwards pulled back to 0.7450 and today following the release of the UK employment report broke below 0.7440 and fell initially to 0.7420.

During the American session it continued to decline and fell to 0.7401. Currently it trades at 0.7405/10, 60 pips below yesterday’s closing price.

The important 0.74

It would be important for the euro to stay above 0.7400. If it fails the short-term trend will continue to favor the upside, but momentum would dissipate. A key support could be seen at 0.7360 that offered resistance in September and support during the current month and is also where the 20-day MA stands.
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Source:: FX Street