EUR/GBP bounce off 2-1/2 week lows, UK retail sales in focus
|The EUR/GBP cross extended its near-term downward trajectory and touched a 2-1/2 week low near 0.8630 region.
Markets moved passed the Westminster terror attack on Wednesday and a mildly positive tone around the GBP/USD major has been a key factor weighing on the major. However, a range bound price-action surrounding the EUR/USD major, despite of lower-than-expected GfK German Consumer Climate index, helped limit further losses.
Moreover, possibilities of some bears covering their short positions, ahead of the UK retail sales data, might have also collaborated to a mild pull-back from lower levels. The latest UK retail sales figure for February is expected to break weakening trend over the past two-months, with consensus estimates pointing to a nominal growth of 0.4% m-o-m.
UK retail sales and US AHCA amongst market movers today – Danske Bank
Later in the day, the results of the fourth and final ECB TLTRO, and the release of Euro-zone consumer confidence index might influence the shared currency and also provide some impetus for short-term traders.
Technical levels to watch
A follow through weakness below 0.8630 level is likely to drag the cross below the 0.8600 handle towards testing its next support near 0.8580 area ahead of the very important 200-day SMA support near mid-0.8500s.
On the upside, any recovery attempt is likely to confront immediate resistance near 0.8660 level, which if cleared has the potential to lift the cross towards 0.8690 resistance before eventually boosting it further towards 0.8730-35 strong hurdle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.