EUR/GBP Flirts With 0.80 Handle on UK PMI
The bearish pressure on the EUR/GBP cross gathered pace following the release of UK construction sector activity report, which pushed the GBP back on the bids.
EUR/GBP off multi-month highs
Currently, the EUR/GBP pair trades -0.06% lower at 0.8000, recovering from fresh session lows at 0.7993. The cross in the EUR/GBP came under renewed selling pressure and eased-off more than one year high after the pound jolted higher on the UK PMI report, which showed that the construction sector activity remained steady in Fed. The UK construction PMI stayed unchanged at 54.2 in March, and came in slightly above the market estimate of 54.1.
While the EUR/USD pair remains near daily lows after poor Euro zone Sentix index, which also contributed to the weakness surrounding the EUR/GBP cross. Markets now await the Euro zone employment and PPI data due shortly for fresh cues.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.8020 (Apr 1 High/ Dec 2014 levels), above which it could extend gains to 0.8042 (Nov 2014 high). To the downside immediate support might be located at 0.7962/50 (1h 50-SMA) below that at 0.7904/00 (1h 200-SMA/ round number).
(Market News Provided by FXstreet)