13 Feb 2015
EUR/GBP falls below 0.74 levels
FXStreet (Mumbai) - The EUR/GBP extended the decline seen after the upbeat Eurozone GDP report to hit a session low of 0.7397 levels.
Trades below 5-DMA
The pair failed to sustain gains above the 5-DMA located at 0.7416 levels despite a better-than-expected Q4 Eurozone and German GDP data. Moreover, the pair witnessed ‘buy the rumor, sell the fact’ trade as it fell from a high of 0.7432 post the release of a strong GDP data.
The second Eurogroup meet scheduled on Monday could have been another reason for the decline in the shared currency. The markets are worried that failure to reach a deal on the Greek debt issue once again on Monday could increase the probability of a Greek default by several notches.
EUR/GBP Technical Levels
The immediate support is seen at 0.7384, under which the pair could extend the losses to 0.7370. On the flip side, rise above the 5-DMA located at 0.7416 shall open doors for a re-test of the daily high at 0.7432.
Trades below 5-DMA
The pair failed to sustain gains above the 5-DMA located at 0.7416 levels despite a better-than-expected Q4 Eurozone and German GDP data. Moreover, the pair witnessed ‘buy the rumor, sell the fact’ trade as it fell from a high of 0.7432 post the release of a strong GDP data.
The second Eurogroup meet scheduled on Monday could have been another reason for the decline in the shared currency. The markets are worried that failure to reach a deal on the Greek debt issue once again on Monday could increase the probability of a Greek default by several notches.
EUR/GBP Technical Levels
The immediate support is seen at 0.7384, under which the pair could extend the losses to 0.7370. On the flip side, rise above the 5-DMA located at 0.7416 shall open doors for a re-test of the daily high at 0.7432.