EUR/GBP keeps range around 1h 100-MA on EZ data

By FXStreet FXStreet (Mumbai) – The cross in the EUR/GBP keeps its recovery mode intact from session lows and remains glued to the hourly 100-SMA, little affected by the poor Euro zone factories data.

EUR/GBP recovers from 0.7468 lows

Currently, the EUR/GBP pair drops -0.44% to 0.7484, retracing losses from daily lows reached at 0.7468. The EUR/GBP cross keeps range in the upper band of 0.74 handle, as the euro remains unperturbed following the release of worse than expected industrial production data from the Euro land.

Eurozone’s industrial production dropped 0.7% m/m in November, down from the upwardly revised 0.8% growth seen in Oct, and coming in much weaker than 0.2% decline expected.

Moreover, the weakness in the EUR/GBP cross can be attributed to the better bid GBP/USD pair, which continues to extend its recovery from five-year lows posted at 1.4350 levels on Tuesday.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7549/ 55 (Jan 12 & 11 High), above which it could extend gains to 0.7596 (Feb 2015 High). To the downside immediate support might be located at 0.7442 (10-DMA) below that at 0.7419/03 (1h 200-SMA/ 20-DMA).
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Source:: FX Street