EUR/GBP Holding Above 0.7900 Ahead of UK PMI
The EUR/GBP pair is trading with some minor weakness on Thursday but is still holding above 0.7900 handle ahead of UK services PMI.
On
Wednesday, disappointing UK construction PMI, over and above Tuesday's
weak manufacturing PMI, did provide a minor boost to the pair, towards
0.7940 level. The pair, however, failed to sustain its strength and
dipped back to 0.7925-24 resistance level, marking 50% Fibonacci
retracement level of 0.8117-0.7735 downfall.
The pair now awaits the release of UK services PMI data, which is likely to determine the next leg of movement.
Technical levels to watch
On
the immediate downside, the pair should continue holding 0.7900
support, which if broken decisively is likely to force the pair to
retest 50-day SMA resistance break-point turned support near 0.7870-65
area.
On the flip side, a sustained strength above 0.7925
resistance now seems to provide the required momentum to lift the pair
beyond Wednesday's high of 0.7940, towards testing its next major
resistance near 0.7970 level, coinciding with 61.8% Fibonacci
retracement level.
