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.