FXStreet (Edinburgh) - The EUR/GBP is now posting fresh intraday highs around the 0.7960 region following poor data from the UK industrial sector.
EUR/GBP bounced off 0.7910
After bottoming out in the vicinity of 0.7910 at the beginning of the week, the cross is now extending the rebound beyond the mid-0.79s boosted by disappointing data in the UK economy: Industrial Production contracted 0.7% and Manufacturing Production 1.3% during May down from April’s advances of 0.3% and 0.4%, respectively. “The market will remain directly offered below the recent high at .8033 and make no impact whatsoever while below the .8054 3 month downtrend”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
EUR/GBP levels to watch
As of writing the cross is up 0.14% at 0.7957 with the immediate resistance at 0.7970 (10-d MA) followed by 0.7973 (high Jul.3) and finally the psychological level at 0.8000. On the flip side, a breach of 0.7915 (2014 low Jul.7) would open the door to 0.7907 (low Sep.6 2012) and then 0.7885 (low Aug.23 2012).