EUR/GBP tests 0.7300 on German data

By FXStreet FXStreet (Mumbai) – The cross in the EUR/GBP erased gains and turned negative in the early European trades, and now seems to attack 0.73 handle after the release of upbeat German trade balance data.

EUR/GBP retreats from 0.7330

Currently, the EUR/GBP pair trades -0.06% lower at 0.7306, hovering near fresh session lows reached at 0.7300 levels. The EUR/GBP cross keeps mild losses as the shared currency was little impressed by Germany’s widening trade surplus.

Germany’s trade surplus widened to €25.0 billion in July, up from the €24.1 billion registered in the previous month. Markets had predicted a surplus of €23.5 billion. While exports rose 2.4% following a revised negative 1.1% growth in June, and imports advanced 2.2% compared with a negative 0.8% a month ago.

However, further upside looks limited as the pound remains firmly bid versus the US dollar amid re-emerging risk-off trades following poor China trade numbers.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located at 0.7280 (Sept 4 Low) below that at 0.7243 (Aug 31 Low).
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Source:: FX Street