EUR/GBP rises to 0.7276 post EMU data

FXStreet (Mumbai) - EUR/GBP jumped to fresh highs during the European session, after EMU CPI data showed that consumer prices in the euro zone picked up from their recent all-time low in February and beat market estimates.

EUR/GBP supported above 5-DMA

The EUR/GBP pair edges higher by 0.37% near fresh session highs of 0.7276 levels, rebounding from fresh seven year lows posted at 0.7240 levels. EUR/GBP rose to fresh session highs after Euro zone price pressures print came in better than market forecasts, though the deflation continues to grip the bloc for the third month in a row. Prices in the 19-nation’s bloc in February were 0.3% lower than a year earlier, after a 0.6% decline in January, beating expectations for a 0.5% drop.

Moreover, upbeat German and EMU PMI readings also boosted the single currency, pushing the cross higher. On the other hand, upside in the cross remains restricted on the back of a minor recovery in the pound after impressive manufacturing PMI reading from the UK.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7319 (10-DMA) levels. To the downside immediate support might be located at 0.7240 and below that at 0.7200 (2007 lows) levels.