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EUR/GBP drops to lows post- PMIs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/GBP cross gives up the bids and turns negative, despite the release of upbeat services sector PMI across the Euro zone.

    EUR/GBP remains capped below 20-DMA at 0.7336

    Currently, the EUR/GBP pair trades modestly flat at 0.7324, failing another attempt to regain 20-DMA post-data release. The EUR/GBP cross retreats to daily lows as the shared currency was little impressed by the estimates-beating German and Euro region’s services PMI reports.

    Germany's services PMI gauge rose 56.0 points, better than the preliminary result of 55.4, hitting 17-month high. While the euro zone PMI Composite Output Index rose to 54.3 in the final month of 2015, against 54.2 seen in November.

    However, the downside remains cushioned on the back of persisting weakness in the pound against the greenback, with markets now awaiting the UK services PMI data for further momentum.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7389 (Dec 30 High), above which it could extend gains to 0.7400 (round number). To the downside immediate support might be located at 0.7305 (Dec 23 Low) below that at 0.7276 (Dec 21 Low).
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