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EUR/GBP extends pullback below 0.8450

  • The euro among the weakest currencies on Thursday.
  • EUR/GBP reverses from one-month highs to two-day lows.

EUR/GBP extended the decline and marked new two-day lows at 0.8434. In the Asian session the cross had climbed to 0.8512, reaching the highest level since December 21st.

The euro is cutting a streak of three consecutive rises in which it had accumulated a rise greater than 170 pips. The pound has already erased Wednesday’s losses.

EUR/GBP technical picture remains bullish but has been damaged by the sharp correction. Relevant support can be found at the 0.8430 area and below that at the 20-day moving average at 0.8375.

A return above the 200 day moving average at 0.8470 could see the Euro regain momentum. A close above 0.8500 would enable more rallying in the short term.

Economic data contributed to the EUR/GBP pullback on Thursday. In the UK, growth numbers beat expectations, while in the Eurozone, inflation numbers continue to cause concern. On Friday, the CPI for the region could show an annual rise of more than 7%.

Technical levels

Source: Fx Street

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