EUR/GBP climbs to one-week tops, around mid-0.9000s

EUR/GBP gained some traction and added to the previous day’s strong intraday positive move.
The GBP bulls seemed rather unimpressed by Tuesday’s softer-than-expected UK GDP report.
The euro lacked any firm directional bias as the focus remains on Thursday’s ECB policy decision.

Haresh Menghani FXStreet

The EUR/GBP cross edged higher following the release of mixed UK macro data and was last seen trading near one-week tops, around mid-0.9000s.

Following an early dip to the 0.9020 region, the cross attracted some buying and was now looking to build on the previous day's strong positive move of around 100 pips. The British pound remained depressed following the release of UK macro data and was seen as one of the key factors lending some support to the EUR/GBP cross amid a subdued action surrounding the shared currency.

According to the UK monthly GDP report, the economy registered a modest growth of 1.8% in May as compared to 5% expected and the previous month's coronavirus-induced sharp contraction of 20.3%. The softer reading, to a larger extent, negated upbeat manufacturing production data, which arrived at +8.4% MoM in May as against a fall of 20.9% expected and -24.4% booked in April.

Meanwhile, the total industrial output matched consensus estimates and came in to show a growth of 6.0% in May. This along with persistent Brexit-related uncertainties kept the GBP bulls on the defensive and remained supportive of the EUR/GBP pair's mildly positive tone.

On the other hand, the euro struggled to gain any meaningful traction and had a rather muted reaction to the release of mostly inline German CPI print as investors seemed reluctant to place any aggressive bets ahead of the ECB policy decision on Thursday. This could turn out to be the only factor that might keep a lid on any strong gains for the cross, at least for now.

In the meantime, Tuesday's release of the German/Eurozone ZEW economic survey results might influence the common currency and produce some short-term trading opportunities.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.9046
Today Daily Change	0.0010
Today Daily Change %	0.11
Today daily open	0.9036

Trends
Daily SMA20	0.9022
Daily SMA50	0.895
Daily SMA100	0.8887
Daily SMA200	0.8708

Levels
Previous Daily High	0.9039
Previous Daily Low	0.8946
Previous Weekly High	0.9068
Previous Weekly Low	0.8938
Previous Monthly High	0.9176
Previous Monthly Low	0.8864
Daily Fibonacci 38.2%	0.9004
Daily Fibonacci 61.8%	0.8981
Daily Pivot Point S1	0.8975
Daily Pivot Point S2	0.8913
Daily Pivot Point S3	0.8881
Daily Pivot Point R1	0.9068
Daily Pivot Point R2	0.9101
Daily Pivot Point R3	0.9162

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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