EUR/GBP testing lows post-German data

By FXStreet FXStreet (Edinburgh) – The renewed weakness around the single currency has prompted EUR/GBP to slip further and print session lows in the 0.7340/35 band.

EUR/GBP follows EUR-weakness

The European cross is extending its daily decline in response to an increasing selling mood around the euro despite the positive results from the German labour market. In fact, the German jobless rate has stayed put at 6.3% during December, while the unemployment has decreased by 14K, more than anticipated.

Next of relevance for the cross will be UK’s Construction PMI seconded by EMU’s flash inflation figures during December.

EUR/GBP levels to consider

As of writing the cross is down 0.20% at 0.7340 and a breach of 0.7299 (61.8% Fibo of 0.7496-0.6979) would expose 0.7257 (100-day sma) and then 0.7189 (55-day sma). On the other hand, the initial resistance lies at 0.7420 (high Jan.4) followed by 0.7496 (high Oct.13) and finally 0.7600 (psychological level).
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Source:: FX Street