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23 Feb 2016
EUR/GBP attempting further gains on weak stock futures and Brexit fears
The EUR/GBP pair extended gains to hit a fresh session high of 0.7832 on the back of a weak action in the European equity futures and Brexit fears.
Ignores German GDP
Traders ignored the data release in Germany, which left the Q4 growth rate unrevised at 0.3% q/q. The data also showed domestic demand as the main driver of growth; something which is well known to the markets.
Hence, markets ignored the same and are attempting to push EUR to fresh highs, given the 0.90% drop in the Stoxx 50 futures. Meanwhile, Brexit fears are keeping the GBP under pressure as well.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7843 (Feb 22 high), above which the cross could attempt a re-test of 0.7897 (Feb 11 high). On the other hand, a breakdown of immediate support at 0.78 could see the cross drop to 0.7755 (Jan 20 high).
Ignores German GDP
Traders ignored the data release in Germany, which left the Q4 growth rate unrevised at 0.3% q/q. The data also showed domestic demand as the main driver of growth; something which is well known to the markets.
Hence, markets ignored the same and are attempting to push EUR to fresh highs, given the 0.90% drop in the Stoxx 50 futures. Meanwhile, Brexit fears are keeping the GBP under pressure as well.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7843 (Feb 22 high), above which the cross could attempt a re-test of 0.7897 (Feb 11 high). On the other hand, a breakdown of immediate support at 0.78 could see the cross drop to 0.7755 (Jan 20 high).