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EUR/GBP back below 0.7200

FXStreet (Edinburgh) - The increasing selling pressure in the single currency is now sending EUR/GBP to another visit of sub-0.7200 levels.

EUR/GBP supported near 0.7150

The cross managed to regain the 0.7200 handle after bottoming out in the mid-0.7100s in early trade, although the bull run has proven to be ephemeral. The poor performances of the sterling and the euro today have relegated the cross to test weekly troughs near 0.7150.

In the data front, UK consumer prices slipped to deflationary territory during April, contracting at an annual pace of 0.1%, while the Core print rose 0.8% YoY vs. 1.0% forecasted and previous. Back to Euroland, the ZEW Survey in Germany and the EMU came in on a softer note for the current month, while inflation figures in the euro area matched the flash readings at 0.0% YoY and 0.2% MoM.

EUR/GBP relevant levels

At the moment the cross is down 0.43% at 0.7196 with the next support at 0.7150 (low May 19) ahead of 0.7123 (low May 13) and then 0.7118 (low Apr.23). On the flip side, a breakout of 0.7235 (high May 19) would expose 0.7252 (daily cloud base) and then 0.7257 (high May 11).

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