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EUR/GBP testing the 0.8500 barrier after EMU GDP

FXstreet.com (Barcelona) - The EUR/GBP has performed poorly Wednesday, hurt in part by the downtrodden economic data out of the EMU, which drove the pair back to the 0.8500 level.

In the EMU, Gross Domestic Product s.a. (QoQ) fell -0.2% in Q1, matching expectations. Moreover, Gross Domestic Product s.a. (YoY) also shrunk -1.1% in Q1, missing estimates of -1.0%. Finally, Retail Sales (YoY) were reported at -1.1%, vs. expectations of -0.8%.

According to the Technical Analyst Team at ICN.com, “The EUR/GBP extended the rebound, after being rejected sharply from 0.8500 yesterday, suggesting the move higher could extend further. Thus we hold onto our bullish view target 0.8600 and 0.8635 levels.”

Briefing the technicals, the pair is operating at the 0.8500 barrier, or -0.43% in these moments. The latest action pits the EUR/GBP below support at 0.8524, eventually facing additional supports at 0.8504 followed by 0.8487. Alternatively, a movement higher will usher in resistances at 0.8561, then 0.8578, and eventually 0.8598, calculates the Mataf.net analyst team.

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