EUR/GBP Holding Above 0.7850 Mark, Upside Seems Limited
Yesterday's Euro weakness was felt in EUR/GBP cross, which extended its downward trajectory earlier during Asian session before recovering to back on better-than-expected German flash manufacturing PMI reading.
Greman manufacturing PMI reading halts further downfall
The
German flash manufacturing PMI came in at 51.9 for April, up from the
50.7 recorded in March. The Services PMI, however, unexpectedly fell to
54.6 in April as compared to March's 55.1 print.
Technical levels to watch
Despite
of its early weakness, the pair has managed to hold yesterday's low
support near 0.7850 level, which if broken would set the stage for
additional weakness for the pair in the near-term. Below 0.7850, the
pair could easily drop towards a short-term descending trend-channel
support, currently near 0.7800 mark.
Meanwhile for the pair to
register any meaningful recovery, it needs to sustain its strength above
0.7890 level, which if conquered has the potential to lift the pair
beyond 0.7900 handle, towards challenging the descending trend-channel
support near 0.7915 level.
