FXStreet (Mumbai) - The cross in the EUR/GBP shaved-off gains and slipped into the red near lows in the European morning, as the EUR bulls were left unimpressed by the surprising improvement in the German business sentiment.
EUR/GBP falls from 0.7345 levels
Currently, the EUR/GBP pair falls -0.17% to fresh session lows of 0.7325, deflating from 0.7347 session highs. The EUR/GBP cross turned negative as the European currency erased gains versus the US dollar, despite the upbeat German IFO reading.
The business climate survey in Germany for September strengthened slightly from 108.3 to 108.5, while a reading of 107.9 was anticipated.
Markets believe that the survey does not include the latest Volkswagen scandal and hence ignored the IFO report.
While the losses in the cross can be also attributed to the strengthening GBP/USD as the USD index remains subdued at 96.28 levels on risk-aversion.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7347 (Today’s High) levels and above which it could extend gains to 0.7375 (Sept 3 High) levels. To the downside immediate support might be located at 0.7292 (Sept 11 Low) below that at 0.7264 (Sept 16 Low).
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