EUR/GBP faded the spike to 0.7950

By FXstreet.com | Updated August 29, 2014 AAA

FXStreet (Edinburgh) - The cross quickly climbed to the boundaries of 0.7950 post-EMU CPI on Friday, although the EUR/GBP is now returning to the 0.7940/35 band.



EUR/GBP boosted by data



The EUR reacted positively after headline consumer prices in the euro area printed a fresh cyclical low at 0.3% inter-month in August while Core prices advanced at an annual pace of 0.9% surpassing previous estimates and July’s print. The cross is prolonging its retracement from recent peaks above the psychological 0.8000 handle, allowing the possibility to challenge July lows near 0.7900 the figure.



EUR/GBP levels to watch



The cross is now losing 0.10% at 0.7938 and a break below 0.7915 (low Aug.13) would expose 0.7910 (low Jul.30) and then 0.7907 (low Jul.29). On the upside, the initial hurdle aligns at 0.7967 (high Aug.26) followed by 0.7925 (21-d MA) and finally 0.8004 (high Aug.25).



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