EUR/GBP hammered through 0.7600 on upbeat UK CPI

By FXStreet FXStreet (Mumbai) – The cross in the EUR/GBP ran through fresh sellers and fell further below 0.76 handle, as the cable spiked 20-pips in reaction to above estimates UK CPI figures.

EUR/GBP reverses more than half of Friday’s rally

Currently, the EUR/GBP pair drops -0.74% to 0.7591, quickly retracing from fresh session lows reached at 0.7583 post-UK data. The EUR/GBP cross came under renewed selling pressure after the pound regained lost momentum against the greenback and accelerated gains beyond 1.43 handle, with the GBP bulls cheering the better than expected inflation figures from the UK.

The UK CPI for December inched higher from 0.0% to 0.1% m/m, while on yearly basis, the figures improved to 0.2% from 0.1% previously. The core gauge accelerated from 1.2% to 1.4% y/y.

Moreover, a weaker EUR/USD ahead of the German ZEW data, adds to further weakness in the EUR/GBP cross. While risk-on rally in the equities, keeps the common currency undermined across the board.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7619/0.7633 (5-DMA/ 1h 50-SMA), above which it could extend gains to 0.7658 (Daily High). To the downside immediate support might be located at 0.7531 (1h 200-SMA) below that at 0.7472 (20-DMA).
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Source:: FX Street