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EUR/GBP drops further to 0.7545 post-UK PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - EUR/GBP accelerates to the downside following the release of surprisingly positive UK services PMI gauge, which further bolstered the GBP bulls.

    EUR/GBP eyes Tuesday’s low

    Currently, the EUR/GBP pair trades -0.38% lower at 0.7549, hovering close to fresh session lows struck at 0.7545 last minutes. The EUR/GBP cross found fresh sellers below a break of daily lows at 0.7560 and dropped further towards Tuesday’s low as the cable jolted higher after the UK services PMI report surprised markets on the upside.

    The services PMI in the UK ticked higher from 55.5 to 55.6 in January, as compared to expectations of a drop to 55.4 points.

    Moreover, the ongoing weakness in the shared currency versus the greenback also collaborated to the downside in the cross. The euro remains pressured on the back of weak services PMI reports from the Euro zone and Germany.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7626 (Feb 1 High), above which it could extend gains to 0.7700 (round number). To the downside immediate support might be located at at 0.7522/23 (Jan 15 & 22 Low) below that at 0.7500/0.7497 (daily S2).
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