EUR/GBP unmoved by UK service PMI data

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:
    EUR/GBP cross keeps the 20-pip range of 0.7980-0.80 handle as investors ignored a slight improvement in the UK PMI in March.

    EUR supported by risk-off in stocks

    The common currency remains supported by sharp losses seen in the European stocks markets. The pan-European Stoxx 600 is currently trading 1.7% lower on the day. Moreover, traders looked through UK services data amid risk aversion in the markets.

    Furthermore, the data also showed the service sector growth in Q1 was slowest since first quarter of 2013.

    Meanwhile, the loss of momentum following a sharp rally from December’s bottom is making it difficult for the pair to take out/hold above 0.80 handle. The cross currently trades around 0.7990 levels.

    EUR/GBP Technical Levels

    The immediate hurdle is noted at 0.80 (zero figure), above which an intraday range breakout would present a target of 0.8020. Acceptance above the same would expose 0.8066 (Sep 2014 high). Conversely, a break below 0.7977 (daily low) would open doors for a drop to 0.7946 (Mar 24 high) – 0.79 handle.
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