EUR/GBP Holding Above 0.7900 Ahead of UK PMI

EUR/GBP Holding Above 0.7900 Ahead of UK PMI

5 May 2016, 10:11
Roberto Jacobs

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.


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