EUR/GBP drops to lows near 0.7770

By FXStreet The now increasing buying interest around the sterling is putting EUR/GBP under further downside pressure towards the 0.7770 area, or session lows.

EUR/GBP vulnerable on GBP strength

The European cross has met increased offered tone after a renewed wave of buying interest has intensified the demand for the sterling today. In addition, the initial risk aversion bias seems to have now ebbed somewhat, allowing a further pullback in EUR.

In the data space, EMU’s Current Account has come in better than forecasted during December, albeit a tad lower than the previous month. Next of relevance will be the ECB Accounts, where traders will look for any hint of potential action at the March meeting.

EUR/GBP key levels

The European cross is now losing 0.25% at 0.7769 and 0.7689 (20-day sma) would aim for 0.7651 (2-month uptrend) and finally 0.7523 (low Feb.3). On the other hand, the next resistance lies at 0.7901 (high Feb11) followed by 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014).
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Source:: FX Street