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EUR/GBP spikes to fresh highs on cheerful German data

FXStreet (Mumbai) - EUR/GBP remained modestly flat in the European morning, after upbeat German retail volumes data reflected that Germany’s shoppers spent more money in January.

EUR/GBP supported above 5-DMA

The EUR/GBP pair trades almost flat near fresh session highs of 0.7285 levels, moving away from fresh seven year lows posted at 0.7230 levels in the previous session. EUR/GBP rose to fresh session highs after positive results from Germany’s retail sector boosted the shared currency.

Retail turnover gained 2.9% m/m in January, compared to a revised 0.6% increase recorded in the previous month and beating market expectations of a 0.4% increase. On yearly basis, the gauge rose 5.3% in the reported period following a increase of 4.0% in the preceding month, against expectations of an expansion of 3.0%.

On the other hand, upside in the cross remains restricted on the back of a solid recovery in the pound ahead of UK construction PMI later in the session.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7360 (20-DMA) levels. To the downside immediate support might be located at 0.7242 and below that at 0.7200 (2007 lows) levels.

German Retail sales beat expectations in January

As per the data released by the German Federal Statistical Office (Destatis), retail sales in January rose 5.3%, beating the estimate of 3.0%, and up from the December’s upwardly revised 4.8% rise.
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