EUR/GBP clocks 2-1/2 week low ahead of UK retail sales data

EUR/GBP clocked a 2-1/2 week low of 0.8636 ahead of the data release in the UK, which is expected to show retail sales ticked up in February. 

Rejected at 0.87 handle

The cross failed to take out 0.87 levels on Wednesday and fell to a low of 0.8643 levels. The losses are being extended in Asia largely due to the weakness in the EUR/USD pair. 

UK retail sales data is seen coming-in at 0.4% m/m and 3.1% y/y in February. Traders should note that the advance indicator - BRC retail sales survey released on March 7 showed a decline in non-food sales. 

Later in the day, Eurozone consumer confidence release could influence the EUR side of the story. 

EUR/GBP Technical Levels

The cross was trading around 0.8640 levels. A break below 0.8592 (50-DMA) would expose 0.8574 (100-DMA) and 0.8553 (200-DMA). On the other hand, a break above 0.8660 (5-DMA) could yield a revisit to 0.8695 (10-DMA) and 0.8726 (Mar 21 high).