Forex: EUR/GBP spikey on UK and EMU data

FXstreet.com (Barcelona) - As the economic calendar updates investors with fundamental information during the London morning, the EUR/GBP has been trading spikey after a first drop from just below 0.8480 to 0.8455. Disappointing UK data provoked a spike higher to 0.8481, followed by a drop to 0.8453 on the EMU confidence report.

In March, EMU industrial confidence (from -11.3 to -12.5), services sentiment (from -5.3 to -6.7) and business climate (from -0.72 to -0.86) fell more than expected (-12.0, -6.5 and -0.80, respectively). Consumer sentiment improved slightly from -23.6 to -23.5, as expected.

UBS analysts are bearish: “There is a strong support at 0.8445 - a closing break below this would be an important bearish development”, wrote analyst Gareth Berry, pointing to resistance at 0.8561 ahead of 0.8602.