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EUR/GBP advances to highs near 0.7790

The recent recovery of the single currency has allowed EUR/GBP to return to the upper-0.7700s and print fresh peaks near 0.7790.

EUR/GBP supported around 0.7700

Yesterday’s pullback seems to have found some decent support in the 0.7700 neighbourhood, although the European cross remains well on its way to clinch its third consecutive week with gains, all sustained by a fresh wave of EUR-buying in response to heightened risk aversion hitting investor sentiment.

Following Wednesday’s disappointing results from the UK docket (Industrial/Manufacturing Production and NIESR GDP Estimate all below expectations), there are no events scheduled for today, while the Eurogroup meeting is only expected this side of the Channel.

EUR/GBP key levels

The European cross is now up 0.09% at 0.7778 with the next up barrier at 0.7875 (high Jan.6 2015) followed by 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014). On the other hand, a breach of 0.7659 (20-day sma) would aim for 0.7604 (2-month uptrend) and finally 0.7523 (low Feb.3).

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