EUR/GBP in a tight range near 0.7330

FXStreet (Edinburgh) - The softer tone in the single currency is prompting EUR/GBP to navigate in a narrow range in the 0.7330/40 area.

EUR/GBP back from 0.7400

The European cross is coming down from recent highs above the 0.7400 handle on Monday, boosted by the solid advance of the shared currency across the board and increasing fears around the Chinese economy.

The cross largely bypassed German GDP results, expanding 0.4% QoQ during the second quarter and 1.6% over the last twelve months. Next of relevance for EUR will be the German IFO indicator due later ahead of UK’s Index of Services.

EUR/GBP levels to consider

At the moment the cross is losing 0.35% at 0.7338 facing the next support at 0.7315 (low Aug.25) ahead of 0.7291 (low Aug.24) and finally 0.7151 (low Aug.21). On the upside, a break above 0.7423 (high Aug.24) would aim for 0.7449 (high May 6) and then 0.7483 (high May 7).

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