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FxWirePro: EUR/GBP holds cloud support, euro finds fresh buying interest post German IFO data

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.12% lower on the day at 0.8945 at around 09:50 GMT.

The pair is extending weakness for the 3rd straight session after failure to extend gains above 0.90 handle.

Price action has found strong support at daily cloud at 0.8931, weakness only on break below.

The single currency is seeing some buying interest across the board after positive German IFO data.

German Business Climate improved to 79.5 for the month of May, beating expectations for a reading of 78.3.

Business Expectations improved to 80.1, bettering forecasts at 75. While Current Assessment came in at 78.9, missing forecasts and lower than April’s 79.4.

US-China-Hong Kong conflict relegating the developments from the coronavirus will be the main driver of the global price action.

Major trend in the pair is bullish. Further consolidation likely before the next leg higher. Weakness only below daily cloud.

Support levels - 0.8931 (cloud top), 0.8890 (cloud base), 0.8859 (21-EMA)

Resistance levels - 0.8987 (38.2% Fib), 0.9020 (Upper BB), 0.9085 (50% Fib)

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