German inflation data fails to impress EUR/GBP pair

FXStreet (Mumbai) - The uptick in the German inflation showed by the official data released today failed to strengthen the shared currency against the British Pound. The EUR/GBP pair remained largely unresponsive around 0.7270-7275 levels.

EUR/GBP: to rise above 0.73?

The pair faced rejection earlier today at 0.7296, which was the hourly 100-MA level. Repeated failure to rise above the same pushed the pair back to 0.7270 levels. So far, no positive reaction is seen despite an upbeat German preliminary CPI data. Month-on-month CPI printed at 0.9%, bettering the estimate of 0.6%, while year-on-year the CPI came-in at 0.1%, beating the estimate of a 0.3% fall. The EUR/USD pair did rise to 1.1240 levels post data, although he GBP/USD too continues to rise; trading at 1.5448 levels, tracking the strength in the Gilt yields. Consequently, the reaction in the EUR/GBP pair has been muted.

EUR/GBP Technical Levels

The immediate resistance is seen at 0.7293 (hourly 100-MA), above which gains could be extended to 0.7313 (hourly 100-MA). On the flip side, support is seen at 0.7255 and 0.7200 levels.

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