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17 Dec 2013
EUR/GBP spikes after UK inflation data
FXstreet.com (Córdoba) - The EUR/GBP from daily lows toward fresh daily highs after data showed UK inflation slowed in November.
The UK annual rate of inflation, measured by the CPI, fell to 2.1% in November from 2.2% in October, the lowest rate in 4 years. The pound weakened after the data as softer prices put no pressure on the BoE to hike rates. The EUR/GBP rose to a fresh daily high of 0.8451 but slowed a few pips ahead yesterday's peak (0.8454) and the 100-day SMA (0.8456).
EUR/GBP levels to watch
At time of writing, the EUR/GBP is trading at the 0.8440 area, virtually unchanged on the day. If the pair manages to break above the 0.8450/56 area, next resistances could be found at 0.8475 (Nov 4 high) and 0.8494 (200-day SMA) ahead of 0.8500 (psychological level). On the downside, supports are seen at 0.8430 (daily low) and 0.8413 (Dec 16 low).
The UK annual rate of inflation, measured by the CPI, fell to 2.1% in November from 2.2% in October, the lowest rate in 4 years. The pound weakened after the data as softer prices put no pressure on the BoE to hike rates. The EUR/GBP rose to a fresh daily high of 0.8451 but slowed a few pips ahead yesterday's peak (0.8454) and the 100-day SMA (0.8456).
EUR/GBP levels to watch
At time of writing, the EUR/GBP is trading at the 0.8440 area, virtually unchanged on the day. If the pair manages to break above the 0.8450/56 area, next resistances could be found at 0.8475 (Nov 4 high) and 0.8494 (200-day SMA) ahead of 0.8500 (psychological level). On the downside, supports are seen at 0.8430 (daily low) and 0.8413 (Dec 16 low).