17 Jan 2014
EUR/GBP falls to 1-week low after UK data
FXstreet.com (Córdoba) - The EUR/GBP slumped to a 1-week low as the pound spiked in the wake of better-than-expected UK retail sales data.
UK retail sales increased 2.6% in December versus 0.4% expected, while YoY sales grew 5.3% double than expected, supporting BoE hawks calling for a rate rise in 2014. The EUR/GBP lost near 70 pips in a matter of minutes and dropped to a low of 0.8259. At time of writing, the pair is trading around 0.8270, recording a 0.7% loss on the day.
EUR/GBP levels to watch
As for technical levels, the EUR/GBP could find next supports at 0.8259 (Jan 17 low), 0.8240 (Jan 8 low) and 0.8229 (Jan 9 low). On the other hand, resistances are seen at 0.8320 (100-hour SMA), 0.8338/39(Jan 17 & 16 highs) and 0.8347 (Jan 15 high).
UK retail sales increased 2.6% in December versus 0.4% expected, while YoY sales grew 5.3% double than expected, supporting BoE hawks calling for a rate rise in 2014. The EUR/GBP lost near 70 pips in a matter of minutes and dropped to a low of 0.8259. At time of writing, the pair is trading around 0.8270, recording a 0.7% loss on the day.
EUR/GBP levels to watch
As for technical levels, the EUR/GBP could find next supports at 0.8259 (Jan 17 low), 0.8240 (Jan 8 low) and 0.8229 (Jan 9 low). On the other hand, resistances are seen at 0.8320 (100-hour SMA), 0.8338/39(Jan 17 & 16 highs) and 0.8347 (Jan 15 high).