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2 Jun 2015
EUR/GBP retesting 0.72 post upbeat UK data
FXStreet (Mumbai) - The British pound edged slightly higher against the shared currency in the European trading, with EUR/GBP trading just ahead of 0.72 barrier. The cross is seen retesting 0.72 handle after the pound was boosted on upbeat UK construction sector activity.
EUR/GBP drops from 0.7210
Currently, the EUR/GBP cross trades 0.18% higher at 0.7202, pressured on sudden GBP buying post data release. The cross in EUR/GBP trimmed gains and is poised to break below 0.72 barrier once again as the pound firmed versus the shared currency after a survey tracking the development in the UK's construction arena beat estimates.
In the report, Markit Economics said the UK construction PMI booked 55.9 in May, following the 54.2 seen in April. Markets had anticipated an upturn to 55.0.
On the other hand, the euro remains heavily bid against its US peer as traders expect the upcoming Euro zone CPI to add 0.2% in May on a monthly, and 0.7% on an annual basis.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7232 (May 19 High) and above which it could extend gains to at 0.7258 (May 11 High) levels. To the downside immediate support might be located at 0.7179 (Today’s Low) levels below that at 0.7142 (June 1 Low) levels.
EUR/GBP drops from 0.7210
Currently, the EUR/GBP cross trades 0.18% higher at 0.7202, pressured on sudden GBP buying post data release. The cross in EUR/GBP trimmed gains and is poised to break below 0.72 barrier once again as the pound firmed versus the shared currency after a survey tracking the development in the UK's construction arena beat estimates.
In the report, Markit Economics said the UK construction PMI booked 55.9 in May, following the 54.2 seen in April. Markets had anticipated an upturn to 55.0.
On the other hand, the euro remains heavily bid against its US peer as traders expect the upcoming Euro zone CPI to add 0.2% in May on a monthly, and 0.7% on an annual basis.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7232 (May 19 High) and above which it could extend gains to at 0.7258 (May 11 High) levels. To the downside immediate support might be located at 0.7179 (Today’s Low) levels below that at 0.7142 (June 1 Low) levels.