EUR/GBP tests 0.7925, then retreats post-ZEW

The cross in the EUR/GBP erased losses and peeked into the positive territory following the release of upbeat economic sentiment index from Germany, ZEW survey showed.

EUR/GBP bounces-off lows just ahead of 0.7000

Currently, the EUR/GBP pair trades modestly flat at 0.7917, having hit fresh session highs at 0.7925 post-ZEW release. The tepid-bounce in EUR/GBP appears to lose steam as markets assess a mixed set of ZEW survey released last minutes.

The German ZEW survey for economic sentiment jumped to 11.2 in April, up from 4.3 booked in March, but the current situation gauge decelerated from 50.7 to 47.7.

On the other hand, the upside also remains capped as the cable remains heavily bids in wake of the Brexit polls shifting towards the ‘remain’ camp and also on risk-on flows amid higher oil and stocks. Focus now shifts towards the US data due later today for fresh momentum on the cross.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.8000 (10-DMA/ round number), above which it could extend gains to 0.8033/50 (Apr 12 High). To the downside immediate support might be located at 0.7900 (round figure) below that at 0.7877/73 (50-DMA/ Mar 31 Low).