EUR/GBP on its way to test 0.7600, PMIs on sight

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The renewed softer tone around the single currency is allowing EUR/GBP to extend its daily decline to the area of 0.7615/10.

    EUR/GBP lower post-Draghi, attention to PMIs

    The unexpected dovish tone at Draghi’s press conference on Thursday has opened the door to a generalized weakness in EUR, capping any bullish attempt in the cross in collaboration with a steady trade in the British pound.

    Data wise in the euro area, flash manufacturing and services PMIs are due later, while Retail Sales and UK’s Public Sector finances are expected across the Channel.

    EUR/GBP key levels

    The European cross is now losing 0.46% at 0.7610 and a breakdown of 0.7496 (20-day sma) would aim for 0.7480 (2-month uptrend) and finally 0.7310 (low Jan.5). On the other hand, the immediate hurdle lines up at 0.7756 (high Jan.20) followed by 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014).
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