FXStreet (Edinburgh) - The EUR/GBP managed to regain the psychological 0.8000 handle on Thursday, following the release of UK retail sales.
EUR/GBP boosted by data
The sterling is losing momentum after Retail Sales in the UK economy disappointed investors in July, expanding at an annual pace of 2.6% and 0.1% inter-month vs. forecasts for 3.0% and 0.4%, respectively; excluding the fuel component, sales rose 3.4% on a yearly basis and 0.5% MoM. “The recent rally continues to be indicated as being corrective only and should fail ahead of the .8136/59 50% retracement, February low and late May high at the very latest”, noted Axel Rudolph, Senior Technical Analyst at Commerzbank.
EUR/GBP levels to consider
The cross is now up 0.17% at 0.8004 with the initial resistance at 0.8017 (high Aug.20) followed by 0.8027 (high Aug.19) and finally 0.8037 (high Aug.15). On the downside, a break below 0.7969 (low Aug. 20) would expose 0.7963 (21-d MA) ahead of 0.7950 (30-d MA).