EUR/GBP remains capped below 0.8000 post-PMIs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The cross in the EUR/GBP continues to trade in the upper band of 0.79 handle, unable to take-out 0.80 barrier as the downbeat German factory data along with the EMU services PMI reports keep a check on the upside.

    EUR/GBP attempts gains after yesterday’s decline

    Currently, the EUR/GBP pair trades 0.10% higher at 0.7990, reversing a dip to session lows reached at 0.7980 in the last hour. The EUR/GBP cross defends mild gains, confined within a 20-pips narrow range as the weakness surrounding the cable overshadows moderate downside in the EUR/USD pair.

    Moreover, a slew week economic releases from Germany and the Eurozone, including the factory orders and services PMIs, also adds keeps the gains capped in the cross. Looking ahead, next in focus for the cross remains the UK services PMI report and the Euro zone retail sales data ahead of the US macro data due later in the NA session.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.8020 (Apr 1 High/ Dec 2014 levels), above which it could extend gains to 0.8042 (Nov 2014 high). To the downside immediate support might be located at 0.7950/44 (1h 50-SMA) below that at 0.7913/00 (1h 200-SMA/ round number).
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