EUR/GBP hovers around 0.7300

FXStreet (Mumbai) - The shared currency outperforms the pound in the mid-European session, now pushing EUR/GBP higher around 0.73 handle. The cross remains elevated largely on sterling weakness despite Moody’s upbeat UK growth forecasts, as the rating agency highlighted that Britain’s high debt burden remains a key weakness. While the EUR heads higher on rising German yields and on ECB Nowotny’s comments.

EUR/GBP supported at 0.7266

Currently, the EUR/GBP cross trades 0.36% higher at 0.7303, retreating from 0.7266 session lows. The cross in EUR/GBP climbs higher as the pound remains undermined by Moody’s review of the UK economy, underscoring concerns surrounding high debt burden.

On the other hand, the shared currency remains firmer against the U dollar following ECB Nowotny comments, appreciating the central bank’s ongoing asset purchases program and calling it a ‘success story’.

Also, upbeat German industrial production data and rallying German yields also supports the upside in the EUR/GBP cross.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7360 (June 3 High) and above which it could extend gains to at 0.7420 (May 1 High) levels. To the downside immediate support might be located at 0.7266 (Today’s Low) levels below that at 0.7248 (June 3 Low) levels.