Published: Tue, 19 May 2009 11:43:00 +0200

Forex: EUR/GBP tests 0.8825 after better than expected ZEW data

FXstreet.com (Barcelona) - After rejecting 0.8825 resistance in a first breaking attempt and falls below 0.8800, the EUR/GBP has been fueled by the better than expected May ZEW Economic Sentiment data ans it has tested the 0.8825 resistance again. Currently the pair is trading around 0.8810/20, 0.30% below today's opening price action.

ZEW Economic Sentiment index has risen to 31.1 pts in May, better than 20,0 pts expected by market, in April, the ZEW Economic Sentiment was posted at 13.pts. According to new data, worst of economic downturn seems to be over, despite labor conditions has been deteriorated further in May. Current Conditions was posted at -92.8 in May from -91.6 pts in april.

Gareth Burgess, Analyst at Chart-Workshop, EUR/GBP weekly chart is bullish: "The 10 week MA held on attempts higher last week and price action eventually closed just at the 30 week moving average. Right now prices are trading below the 30 week moving average with the 0.8800 level in focus as of writing. Once below this level the 0.8680 region is the target level to focus on but there are some mild support levels to get through first."

By Fxstreet.com

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