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EUR/GBP awaits UK data

FXstreet.com (Barcelona) - Yesterday, EUR/GBP was reacting to the EZ moving out of recession and German GDP numbers positive.

EUR/GBP, however, was taken lower as the UK Claimant Count changes and job data took the spotlight and became the real mover, making for a heavy looking cross. The pair was eventually supported at 0.8530 and found bids to take the pair through the pivot again at 0.8560 making for a high of 0.8571 overnight. Today, attention will turn towards UK Retail Sales.

EUR/GBP sub the pivot

EUR/GBP is trading back around the four month support line at 0.8536, said Axel Rudolph, Senior Technical Analyst at Commerzbank…“a fall through which will push the .8500 region and the June low at .8470 back into the picture”. He said minor resistance sits at 0.8580/84 (July 10 low and 55 day moving average) and further resistance at 0.8597, the May peak. “We expect to see a sell-off towards the 200 day moving average at 0.8450 being seen over the coming weeks now that the current August high at 0.8769 has been highlighted as a significant top”. The 20 dma is 0.8633, the 50 dma is 0.8587 and the 200 dma is 0.8447. RSI (9) reads 32.12. Supports are ascending from 0.8420, 0.8441, 0.8464, 0.8512. Spot is currently 0.8550 while resistances are 0.8580, 0.8609, 0.8625 and 0.8679.

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