2 Dec 2015
EUR/GBP takes out Fib resistance after UK data
FXStreet (Mumbai) - The EUR/GBP jumped above 0.7063 (76.4% of 0.6931-0.7493) after the UK construction PMI for November was reported at 7-month low.
Eyes Eurozone CPI
The cross now trades at a session high of 0.7067. Sterling was offered across the board as the headline seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) dropped to a 7–month low of 55.3 from Oct’s 55.8.
The focus is now on the Eurozone preliminary CPI and core CPI reading for November.
EUR/GBP Technical Levels
The immediate hurdle is seen at 0.7080 (Nov 24 high), above which the cross could target 0.7102 (23.6% of 0.7493-0.6981). On the other side, a failure to sustain above 0.7063 (76.4% of 0.6931-0.7493) could see the cross re-test 0.7030 (hourly 200-MA).
Eyes Eurozone CPI
The cross now trades at a session high of 0.7067. Sterling was offered across the board as the headline seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) dropped to a 7–month low of 55.3 from Oct’s 55.8.
The focus is now on the Eurozone preliminary CPI and core CPI reading for November.
EUR/GBP Technical Levels
The immediate hurdle is seen at 0.7080 (Nov 24 high), above which the cross could target 0.7102 (23.6% of 0.7493-0.6981). On the other side, a failure to sustain above 0.7063 (76.4% of 0.6931-0.7493) could see the cross re-test 0.7030 (hourly 200-MA).