EURGBP
The EUR to GBP rallies to fresh four month highs on positive manufacturing PMI’S from the European Monetary Union and Germany. The Manufacturing PMI in the European Monetary Union came in at 49.2 above the market consensus of 49.1 in February. One more positive surprise came from the Germany PMI. The February manufacturing PMI in Germany came in at 48 above the forecasts of 47.8 for February.
On the other hand The United Kingdom Manufacturing PMI came in at 51.7 below the market expectations of 51.8 in February. GBP is under selling pressure the last week as UK authorities keep a hard line on trade talks with the EU, stating that they were willing to operate without a deal if they don’t achieve one in the next four months.
Read our Best Trading Ideas for 2020.
EURGBP is 1.05% higher at 0.8691 as the rebound from the recent lows accelerates after the pair pierced above the descending trendline that began in early October 2019, while on Friday also breached the 100-day moving average. The technical outlook is positive now fro the short term as EURGBP makes consecutive higher highs and higher lows.
On the upside, the daily top at 0.8694 will be the first resistance area. A break above might test the next hurdle at 0.8745 the 200-day moving average. The next supply zone will be met at 0.8810 the high from October 14th, 2019.
On the flip side, immediate support for the EURGBP stands at 0.8594 the daily low. Next level of support is at 0.8514 the 100-day moving average. More bids might emerge at 0.8469 the 50-day moving average.