EUR/GBP quickly recovers UK data-led dip, turns flat around 0.9180
|For the second straight session the EUR/GBP cross faced rejection at the 0.9200 handle and refreshed session lows post-UK data.
The cross met with some fresh supply after data released from the UK showed that the overall industrial output rose modestly in July. Adding to the positive manufacturing sector data, UK goods trade deficit came-in at £11.58 billion for July, while previous month's reading was also revised up to show a deficit £11.53 billion as compared to £12.722 billion reported earlier.
• UK manufacturing production beats expectations in July
Meanwhile, the market reaction to the data turned out to be short-lived, with the cross quickly rebounded few pips to currently trade around the 0.9175-80 region amid post-ECB bullish sentiment surrounding the EUR/USD major.
With the UK data out of the way, end-of-the week profit taking, back towards 0.9140-35 support area, now seems a distinct possibility.
Technical levels to watch
A follow through weakness below the mentioned support is likely to accelerate the fall towards the 0.9100 handle before the cross eventually drops to its next horizontal support near the 0.9085-80 region.
On the upside, the 0.9200 handle remains immediate strong supply zone, which if conquered might trigger a short-covering rally back towards 0.9260-65 hurdle en-route the 0.9300 handle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.