EUR/GBP nears long-term 38.2% Fibo support

A minor recovery in Cable in Asia following a two-day losing streak pushed EUR/GBP pair lower towards 0.8556 (38.2% of 2007 low-2008 high).

Rejected at 0.8627

The cross turned lower from the previous session high of 0.8627 as the corrective rally in the British Pound resumed. Cable is attempting gains in Asia, trading well above 1.29 levels at the time of writing. Meanwhile, EUR/USD breached 200-DMA support and trading around 1.1085 levels.

Consequently, EUR/GBP cross fell to near 0.8556 levels. The cross could be influenced by the UK data releases, which are expected to show a contraction in the manufacturing and industrial production in May.

EUR/GBP Technical Levels

The immediate support is seen at 0.8556 (38.2% of 2007 low-2008 high), under which prices could test psychological level of 0.85. On the higher side, resistance is seen at 0.8627 (previous day’s high), above which the pair could target 0.8665 (Nov 2011 high).