EUR/GBP fails to build on overnight gains, corrects back to mid-0.9000s
|The EUR/GBP cross ran through some fresh offers on Friday and eroded part of previous session's gains back closer to 10-month tops, touched earlier this week.
On Thursday, the cross attracted some fresh buying interest and rebounded sharply from the 0.90 neighborhood following the release of the UK manufacturing production and trade deficit data. With investors looking past last week's perceived dovish BoE quarterly inflation report, the EUR/USD major has been losing some of its shine and thus, failed to assist the cross to build on overnight gains.
The cross retreated from the vicinity of yearly tops but has held its broader weekly trading between the 0.90-0.91 handles. Hence, traders are likely to wait for a decisive break through the mentioned range before positioning for the next leg of directional move for the cross, amid absent fundamental drivers in-terms of any major market moving economic releases.
• GBP: Performance under pressure – Nomura
Technical levels to watch
Weakness back below 0.9040 immediate support, the cross is likely to head back towards retesting the key 0.90 psychological mark before eventually dropping to 0.8975-70 horizontal support.
On the upside, bulls would be eyeing for a sustained move beyond 0.9070 level, above which the cross is likely to make a fresh attempt towards conquering the 0.9100 handle.
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