EUR/GBP rejected at 0.79 levels

FXStreet (Mumbai) - The single currency fell against the British Pound after facing rejection at 0.79 levels on dovish comments from the European Central Bank (ECB) member Edwald Nowotny.

The EUR/GBP pair now trades 0.18% lower at 0.7869 levels after facing rejection at 0.7895-0.79 levels. The EUR weakened after the ECB member Nowotny indicated possibility of a sovereign bond QE, while mentioning high probability of further weakness in the inflation in Q1 2015. However, losses were capped after the policy maker indicated a low probability of negative benchmark interest rates. The single currency also received some support from the Eurozone Sentix investor confidence printed at 2.5, compared to the expected print of -9.

EUR/GBP Technical Levels

The pair has an immediate support located at 0.7850, under which losses could be extended to 0.7832 levels. Meanwhile, resistance is seen at 0.7895-0.79 and 0.7917-0.7922 levels.

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