EUR/GBP losses momentum near 0.7400 and retreats

By FXStreet FXStreet (Córdoba) – After rising during two days in a row, EUR/GBP lost strength and today is pulling back. Recently the pair printed a fresh daily low at 0.7332 and currently it trades at 0.7340, down 0.70% for the day so far.

EUR/GBP capped below 0.7400

The rally from 0.7260 found resistance below 0.7400. Yesterday the pair peaked at 0.7395, the highest level since August 24 before starting to retreat. The 0.7400 area remains a key medium-term resistance area, that the euro needs to surpass and confirm on top in order to open the way for more gains.

The decline from weekly highs so far has been moderate and it could be considered so far a correction. A support area to watch is the 0.7225 – 0.7255 zone: it has been important during the last two quarters, if the price falls back below, the pound could gain further momentum.

Data and ECB

The pound is rising against the euro despite a weak reading on a report of the UK construction sector (57.3 vs 57.5 expected). In the Eurozone the PPI index came in line with expectations showing an annual rate of -2.1%. On Thursday attention will turn to …read more

Source:: FX Street