EUR/GBP Falls After 4-Day Rally
EUR/GBP
is losing 50 pips on Thursday despite another weak economic report from
the United Kingdom. During the American session, the pair printed a
fresh daily low at 0.7860, the lowest since Tuesday.
The pair
started the day above 0.7900, holding a bullish tone after hitting on
Wednesday 0.7947 (2-week high). Yesterday it finished far from the highs
and today it retreated even further. For the first time in a week, the
euro is down versus the pound after rising almost 200 pips.
In
the UK, the PMI service index dropped to 52.3, below the 53.5 expected.
It was the lowest reading in three years. Earlier in the week, the
construction and manufacturing PMI also showed the lowest numbers in
years.
EUR/GBP technical levels
Today’s
decline found support around the 55-DMA that stands at 0.7860 and is
the first technical resistance to consider followed by 0.7820 (May 2
low) and 0.7800/05 (psychological / April 28 high). On the opposite
direction, resistance could be seen at 0.7890 (May 4 low), 0.7920 (May 3
high) and 0.7945/50 (Mar 24 / May 4 high).
