3 May 2016
EUR/GBP rises to fresh weekly highs on weak UK PMI
The cross in the EUR/GBP extended further to the upside following the release of the UK manufacturing PMI report, which negatively surprised markets.
EUR/GBP eyes 0.7900
Currently, the EUR/GBP pair trades 0.22% higher near fresh 7-day highs of 0.7884, aiming to reach 0.79 barrier. The cross spiked higher after the cable moved-off sharply from fresh four-month tops on the release of downbeat UK manufacturing sector activity report.
The UK manufacturing PMI dipped to 49.2 in April, down from 50.7 booked in March, and dived into the contraction territory after over 2 years in expansion.
Further, the cross remains strongly bid also in response strengthening EUR/USD pair, as the broad based USD selling extends into a seventh straight session. Looking ahead, the broader market sentiment will continue to dominate the moves in both the EUR and GBP.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7900/19 (round figure/ daily R3), above which it could extend gains to 0.7948/50 (Mar 31 High/ psychological levels). To the downside immediate support might be located at 0.7849/40 (daily pivot/ 5-DMA) below that at 0.7809/00 (10-DMA/ round number).
EUR/GBP eyes 0.7900
Currently, the EUR/GBP pair trades 0.22% higher near fresh 7-day highs of 0.7884, aiming to reach 0.79 barrier. The cross spiked higher after the cable moved-off sharply from fresh four-month tops on the release of downbeat UK manufacturing sector activity report.
The UK manufacturing PMI dipped to 49.2 in April, down from 50.7 booked in March, and dived into the contraction territory after over 2 years in expansion.
Further, the cross remains strongly bid also in response strengthening EUR/USD pair, as the broad based USD selling extends into a seventh straight session. Looking ahead, the broader market sentiment will continue to dominate the moves in both the EUR and GBP.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7900/19 (round figure/ daily R3), above which it could extend gains to 0.7948/50 (Mar 31 High/ psychological levels). To the downside immediate support might be located at 0.7849/40 (daily pivot/ 5-DMA) below that at 0.7809/00 (10-DMA/ round number).