EUR/GBP: Bearish mood intact after upbeat UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/GBP pair is looking to extend losses after the data in the UK showed manufacturing output improved higher than estimates in January.

    Eyes 0.77 handle

    The cross appears on track to test psychological support level of 0.77. The single currency was already losing ground on expectations of more ECB easing tomorrow. An upbeat UK data only added to the existing bearish pressure around the EUR/GBP cross.

    Manufacturing production printed at 0.7% m/m and -0.1% y/y, both beating estimates. However, annualized industrial production missed estimate. Still, the data was good enough to push the cross to fresh session low of 0.7705.

    EUR/GBP Technical Levels

    The immediate support is seen at 0.7681 (23.6% of 0.6981-0.7897), under which the cross could drop to 0.7656 (50-DMA). On the other hand, a break above 0.7726 (5-DMA) could see the cross re-test 10-DMA at 0.7771.
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