EUR/GBP testing lows near 0.7185 on Ifo

By FXStreet FXStreet (Mumbai) – The EUR/GBP cross failed to surpass the key resistance near 0.7220 region and turned lower following the release of German Ifo Surveys.

EUR/GBP fades a spike to 0.7211

Currently, the EUR/GBP pair trades -0.10% at 0.7187, reversing a spike to 0.7211 level reached in last hours. The EUR/GBP cross retreated below 0.72 handle after the euro was hit by deteriorating German business morale as reflected by the Ifo survey.

The headline Ifo Business Climate Index fell to 108.2 during Oct, below the 108.5 booked in September, although beat forecasts of 108.10 drop. Meanwhile the Current Assessment sub-survey, dropped to 112.6 points, after the previous month’s figure of 114 and missing estimates of 113.5 points.

While the GBP/USD pair remains well bid and contributes to further downside in the EUR/GBP cross. Markets now await the UK macro releases due later this session for further momentum on the cross.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7219 (100 + 200-DMA), above which it could extend gains to 0.7231/34 (5-DMA + Oct 23 High). To the downside immediate support might be located at 0.7177 (daily S3) below that at 0.7148 (Aug 21 Low).
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Source:: FX Street