EUR/GBP calm in the mid-0.7500s

FXStreet (Edinburgh) - The bearishness surrounding both the euro and the sterling have sent EUR/GBP to test fresh lows in the mid-0.7500s on Friday.

EUR/GBP focus on UK, EMU data

Following the recent ECB announces, market participants will now focus on today’s releases. In the euro area, flash PMIs prints are due while Retail Sales are scheduled in the UK docket. Consensus expects headline sales to have contracted at a monthly pace of 0.6%; excluding the Fuel component, sales are also expected at -0.7%.

In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The market will remain directly offered below the .7713/67 region (October 2014 low). Key resistance remains the .7945 2013-2015 downtrend”.

EUR/GBP levels to watch

The cross is now retreating 0.08% at 0.7563 with the next support at 0.7535 (low Feb.27 2008) ahead of 0.7516 (low Feb.26 2008). On the flip side, a break above 0.7620 (hourly high Jan.22) would expose 0.7676 (high Jan.22) and finally 0.7695 (10-d MA).