15 Jul 2014
EUR/GBP tumbles after UK CPI beats expectations
FXStreet (Córdoba) - The EUR/GBP tumbled to fresh lows lows as the pound strengthened sharply following the release of better-than-expected UK inflation data.
UK consumer price index rose 0.2% in June versus an expected drop of 0.1%, while YoY it grew 1.9% versus 1.6% forecast. Although producer price index missed expectations, DCLG House Price Index came in strong.
The EUR/GBP lost nearly 50 pips in a matter of minutes and hit a 4-day low of 0.7936. At time of writing, the pair is trading at 0.7940, 0.38% below its opening price.
EUR/GBP technical levels
In terms of technical levels, next supports are seen at 0.7935 (Jul 10 low), 0.7926 (Jul 8 low) ahead of 0.7900 (psychological level). On the other hand, resistances could be found at 0.7980 (Jul 15 high), 0.8000 (psychologic level), 0.8007 (Jul 1 high) and the 0.8027/31 area (Jun 26 & 30 highs).
UK consumer price index rose 0.2% in June versus an expected drop of 0.1%, while YoY it grew 1.9% versus 1.6% forecast. Although producer price index missed expectations, DCLG House Price Index came in strong.
The EUR/GBP lost nearly 50 pips in a matter of minutes and hit a 4-day low of 0.7936. At time of writing, the pair is trading at 0.7940, 0.38% below its opening price.
EUR/GBP technical levels
In terms of technical levels, next supports are seen at 0.7935 (Jul 10 low), 0.7926 (Jul 8 low) ahead of 0.7900 (psychological level). On the other hand, resistances could be found at 0.7980 (Jul 15 high), 0.8000 (psychologic level), 0.8007 (Jul 1 high) and the 0.8027/31 area (Jun 26 & 30 highs).