EUR/GBP Rebounds to 0.7900 Handle ahead of UK Production Data

EUR/GBP Rebounds to 0.7900 Handle ahead of UK Production Data

The EUR/GBP pair rebounded from 20-day SMA support near 0.7865 level and is currently trading just below 0.7900 handle ahead of UK industrial production data.

The UK manufacturing & industrial production data for the month of March is due for release in a short while from now. After contracting by 1.1% and 0.3% respectively, the manufacturing and industrial production is expected to have rebounded in March with consensus estimating a positive print of 0.4% and 0.7% respectively.

The pair has repeatedly managed to bounce off 20-day SMA support near 0.7865 but any subsequent bounce above 0.7900, to 0.7925 resistance, is being sold into. Today's economic release might now provide the required momentum to trigger a break-out from the pair's near-term trading range.

Technical levels to watch

Above 0.7900 level, traders will be eyeing for momentum above 0.7925 resistance, which if conquered sets the stage for extension of the pair's bounce towards its next major resistance near 0.7980-90 area (nearing the very important 0.8000 psychological mark).

On the downside, 20-day SMA near 0.7865 remains immediate support to break, below which the pair might turn vulnerable to its near-term corrective move, initially towards 0.7825 intermediate horizontal support and eventually towards its next major support near 0.7785 level.