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EUR/GBP dips to lows near 0.7580 post-UK PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/GBP cross ran through fresh offers and fell further below 0.76 handle following the release of UK manufacturing PMI report, which surprised on the upside.

    EUR/GBP heavy post-data

    Currently, the EUR/GBP pair trades -0.20% lower at 0.7590, retreating quickly from fresh session lows of 0.7578 struck shortly after UK data release. The cable witnessed a 30-pips rally after the UK’s manufacturing PMI reports unexpectedly showed acceleration and caught markets off-guard, which led to a fresh sell-off in the EUR/GBP cross.

    UK manufacturing PMI expanded in Dec, posting a reading of 52.9 versus upwardly revised 52.1 in December, and against 51.6 expectations.

    On the EUR-side, the EUR/USD pair continues to trade around 1.0850 levels, having completely ignored softer manufacturing PMI readings from the Euro area. Meanwhile, attention now turns to the US macro news and ECB Draghi’s’ testimony for further momentum.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7604/22 (10-DMA/ 1h 200-SMA), above which it could extend gains to 0.7700 (round number). To the downside immediate support might be located at 0.7559 (Jan 29 High) below that at 0.7522/23 (Jan 15 & 22 Low).
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