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Upbeat PMIs is welcome news for EUR/GBP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Upbeat German and Eurozone PMI figure released today could only add to bullish tone around EUR/GBP, which is eyeing fresh 12-month high on cable weakness.

    GBP under pressure

    The risk aversion in FTSE and other major European equities is keeping GBP under pressure ahead of the UK manufacturing PMI release. On the other hand, the resulting carry unwind is helping EUR maintain its bid tone.

    German PMI and Eurozone PMI both bettered estimates by printing at 50.7 and 51.7 respectively. Though the data has not resulted in sharp gains so far, it could only add to the bid tone around EUR amid losses in the equity markets.

    EUR/GBP Technical Levels

    The immediate hurdle is noted at 0.80 handle, above which the cross may test 0.8065 levels (61.8% of Jul 2013-Jul 2015 plunge). A break higher would expose 0.81 handle. On the other hand, a breakdown of support at 0.7928 (Feb 25 high) would expose support at 0.79, under which losses could be extended to 0.7830 (Mar 29 low).
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