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EUR/GBP down to test 0.7100

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The softer tone in the shared currency is now dragging EUR/GBP to test the key support at 0.7100.

    EUR/GBP lower post-UK release

    The decline in the European cross has been fuelled further after the manufacturing PMI in the UK economy has surprised investors during the last month, coming in at 55.5 vs. 51.3 expected and September’s 51.5.

    The subsequent weakness in EUR has done the rest, pushing the cross further down to test 3-month lows in the 0.7100 neighbourhood. Previously, market participants have largely ignored the mixed results from the manufacturing PMIs in the euro region for the month of October.

    EUR/GBP relevant levels

    As of writing the cross is down 0.30% at 0.7111 and a breach of 0.7100 (psychological level) would aim for 0.7067 (23.6% Fibo of 0.6935-0.7496) and finally 0.6934 (2015 low Jul.17). ON the other hand, the next hurdle lines up at 0.7215 (50% Fibo of 0.6935-0.7496) followed by 0.7240 (200-day sma) and then 0.7313 (55-day sma).
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