Upbeat Eurozone GDP fails to strengthen the EUR/GBP pair

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The EUR/GBP declined marginally after the preliminary data in the Eurozone showed the economy gained momentum in the Q4 2014.

Upbeat GDP already priced-in?

The EUR/GBP pair hit a high of 0.7434 ahead of the Eurozone GDP data. Moreover, a better-than-expected German Q4 GDP released earlier today had raised hopes of a strong Eurozone GDP number. Thus, the pair declined marginally to 0.7420 levels after the data confirmed that the Eurozone economy expanded 0.3% inter-quarter and 0.9% year-on-year, beating the estimate of 0.25 and 0.8% respectively.

The pair now trades at 0.7423 levels; up 0.15% for the day. A fresh seven-year low of 0.7370 was set yesterday post the release of the Bank of England’s slightly hawkish Quarterly Inflation Report.

EUR/GBP Technical Levels

The immediate resistance is seen at 0.7427 (Jan. 23rd low), above which the pair could rise to the 10-DMA located at 0.7446. On the flip side, a break below 0.74 could open doors for a re-test of seven-year low of 0.7370.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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