Forex: EUR/GBP upside capped at 0.7880

FXstreet.com (Barcelona) - The pair has been propelled to the boundaries of 0.7880 after comments by agency Fitch regarding the ECB might act without the consent of the Bundesbank. The comments have propped up the EUR upside, quickly leaving behind the important resistance of 1.2400 against the greenback. GBP has followed suit, climbing to the proximities of 1.5780 vs. the USD against a backdrop of rising risk-on trade.

In the data front, UK Public Sector Net Borrowing fell to £1.8 billion in July vs. a rise to £12.2 bn in June. And regarding the euro bloc, Spanish 12-m and 18-m T-bill auctions have registered lower borrowing costs, in line with expectations.

The pair is now up 0.13% at 0.7871 with the next resistance at 0.7885 (high Aug.14) followed by 0.7901 (high Aug.9) then 0.7933 (Upper Bollinger) and 0.7947 (high Aug.8).
On the oher hand, a breakdown of 0.7833 (low Aug.20) would expose 0.7813 (low Aug.16) then 0.7802 (low Jul.31) and 0.7791 (low Jul.30).