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Forex pairs in this Article » EUR/GBP (Barcelona) - EURGBP started the new year around the 0.81 level, and has not looked back ever since, last at 0.8471, near fresh 11-month highs, printed yesterday in early NY trade at 0.8478. The cross adds another +0.84% in weekly gains following third straight week in the positive, making the best 3-week performance since late 2010, mostly on Pound weakness, coupled with some Euro strength.

London session ahead will be a tricky one as 2 different key drivers for both currencies will be released, first one being German Ifo business climate that will be closely watched by market participants following yesterday's much better than anticipated German PMIs. Thirty minutes later will come UK Prelim 4Q GDP, which could come into the negative territory, worse than the +0.9% previous, rising fears of a double dip recession. A rise in intraday volatility is a very likely outcome for this cross today either direction.

Immediate resistance to the upside for EURGBP shows at mentioned fresh 11-month highs 0.8478, followed by Feb 28 highs 2012 at 0.8490, and Feb 24 highs at 0.8506. To the downside, nearest term support lies at Jan 22 highs 0.8441, followed by yesterday's lows at 0.8391, and Tuesday's weekly lows at 0.8364.
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