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Forex pairs in this Article » GBP/USD, EUR/GBP (Athens) – The EUR/GBP is trading higher the last couple of hours, after Spain managed to sell 10-year bonds on the lowest yield (4.269%), since the September of 2010.

EUR/GBP upwards since Spain achieves very low yields in bond auction

Apart from the Spain bonds auction which to a major extent assisted in the single currency’s boosting, the solid Euro zone data were surely also in favor for the common currency. Elaborating on, both the Euro zone PMI and retail sales data, were announced at much better levels bolstering yesterday’s neutral ECB outlook. More precisely, the slightly better Euro zone PMI showed that the pace of manufacturing- and service-sector growth accelerated for a sixth consecutive month, hitting the strongest level since June 2011. Thus, the result might assist in scattering bets on a near-term expansion of ECB stimulus efforts and fuel continued Euro gains.

Technical Outlook on EUR/GBP

Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/GBP following the fairly robust rebound from the September low at .8332, we would allow for some near term strength and consolidation. We expect that the market will find strong resistance at the June low at .8470 and the 38.2% retracement at .8500. This resistance is reinforced by the 2 month downtrend at .8494 and we maintain our bearish bias while capped here. Intraday rallies should struggle .8400/5 to leave focus once more on the .8332 September low.”
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