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EUR/GBP tests 0.7620 and retreats on UK PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - A fresh bout of buying interest is seen around the EUR/GBP cross as the cable weakened further, hit badly by the awful construction PMI data from the UK.

    EUR/GBP breaks beyond 0.76 handle

    Currently, the EUR/GBP pair trades 0.76% higher at 0.7601, easing off fresh session highs of 0.7617 reached few minutes ago. The pound battering extended following the release of worse-than expected UK construction PMI report, which showed that the pace of construction sector activity was the slowest in nine-months.

    The Markit/CIPS construction PMI from the UK for January dropped to 55.0, from 57.8 seen in December, and stood way below estimates of 57.5.

    While the bulls remain support also on the back of higher EUR/USD as the common currency continues to benefit from persisting risk-off market profile. Meanwhile, focus now remains on the Euro zone employment report due out in less than 15 minutes.

    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 0.7559 (Jan 29 High) below that at 0.7522/23 (Jan 15 & 22 Low).
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