EUR/GBP faded the spike to 0.7350

FXStreet (Edinburgh) - The sterling is outperforming its peers on Wednesday, now dragging EUR/GBP to re-test intraday lows around 0.7320.

EUR/GBP hurt by GBP-strength

The solid tone from GBP continues to take a toll on the cross, which rapidly faded the earlier spike to the boundaries of 0.7350. The positive sentiment surrounding the risk appetite is acting as another catalyst for the pair’s downside, which now eyes the critical support at 0.7300.

In the data space, UK’s Mortgage Approvals gauged by BBA climbed to 36.4K during January, leaving behind estimates and December’s reading. In the euro area, Draghi’s speech will be the next risk event.

EUR/GBP relevant levels

At the moment the cross is down 0.17% at 0.7325 with the next support at 0.7300 (psychological level) ahead of 0.7256 (61.8% of 0.5681-0.9805) and then 0.7200 (psychological level). On the other hand, a break above 0.7388 (10-d MA) would aim for 0.7404 (high Feb.23) and finally 0.7429 (high Feb.20).

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