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Forex pairs in this Article » EUR/GBP (Barcelona) - The EUR/GBP foreign exchange cross rate is last trading around 0.8416 again little changed since the NY open, off recent double fresh 4-month lows at 0.8407 printed for the first time yesterday following ECB press conference, down -1.33% for the week so far ahead of UK manufacturing production data at 08:30 GMT.

EUR/GBP likely to extend downmove on better UK data ahead

“EUR/GBP dropped for the seventh consecutive trading day to its lowest level in nearly 4 months,” said BK Asset Management managing director Kathy Lien, adding: “Widespread improvements in U.K. data contrast sharply with mixed economic reports from the Eurozone. We will have to wait another 2 weeks to see if MPC members were encouraged by the recent improvements in data. Based on the sharp rise in the PMI manufacturing index, we have reasons to believe that these reports will support a further rally in sterling.”

EUR/GBP key technical levels

Immediate support to the downside for EUR/GBP lies at recent session/yesterday's 4-month lows 0.8407, followed by April 26/May 06 lows at 0.8401/0.8398. To the upside, closest resistance shows at May 16 lows 0.8419, followed by Wednesday's lows at 0.8426, and Tuesday's lows at 0.8440.
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