EUR/GBP bouncing modestly after four days of misery

FXstreet.com (Barcelona) - The EUR/GBP is finally attempting a bounce Tuesday after several days of persistent selling pressure following GBP-bullish data and news flow last week.

EUR/GBP has tumbled recently on bullish news out of Britain

While this week has started off with very light data flow out of Europe and England, last week’s news flow out of Britain proved to be the fuel needed to send the EURGBP tumbling to the downside over the last four sessions leading into Tuesday. So far Tuesday, we are seeing a very modest bounce attempt by the EUR/GBP cross. Traders will get another potential catalyst at 8:30a.m. GMT in the form of mortgage application data out of the British Bankers Association.

Technical outlook for EUR/GBP

In addition to the economic data Tuesday, traders and technicians will be eyeing short-term support for EUR/GBP at 0.8573 – the 7/10 intraday low. Below that, support does not come into play until 0.8513. Resistance comes into play at the 7/17 intraday high at 0.8710. Above that level, no resistance will come into play until the 0.8750 level – the highs from March of this year.

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The rally in NZD/USD that started on 7/8 continued into early Tuesday trading with the cross pressing higher towards “correction resistance” at 0.8053.
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