Forex: EUR/GBP fall finds support at 0.8504 low

FXstreet.com (Barcelona) - The EUR/GBP fell from just below 0.8550, dropped below the 0.8541 opening price but found support at the lower 0.85 area, with low at 0.8504. The mood in Europe is improving, but the British Pound is moving stronger than the EUR. As of writing, the cross is quoting around 0.8520/25.

German PPI fell -0.2% (consensus of 0.0%) and annualized data eased from 1.2% to 0.4% (consensus of 0.7%). EMU current account surprised positively, with a wider seasonally adjusted surplus from €13.8B to €16.3B in February, beating expectations of €15.0B, and n.s.a. data at €12.1B instead of the €1.3B consensus. Italy industrial orders fell -2.5% (MoM) and from -3.3% to -7.9% (YoY), while industrial sales contracted -4.7% (MoM).

“We suspect the 0.8561/65 (cloud+Fibo resistance) will curb the topside for a slide back to the 0.8483 short term uptrend and the base of the cloud at 0.8450”, wrote Commerzbank analyst Karen Jones.