EURGBP Breaches The 50 Day MA
EURGBP adds 0.43% at 0.9071 recovering from early losses down to 0.9025, and managed to break above the 50 day moving average at 0.9062 making an attempt to enter inside the ascending channel from May 2019. On the data front, EU Markit Manufacturing PMI came in at 47 in line with expectations in August. The Germany Markit Manufacturing PMI came in at 43.50 below forecasts of 43.6 in August. France Markit Manufacturing PMI came in at 51.1 topping forecasts of 51 in August. Italy Markit Manufacturing PMI came in at 48.7, beating expectations of 48.5 in August.
On the technical analysis side the bulls are fighting to stay in control of EURGBP as the pair trades above all major daily moving averages and as of writing the pair managed to breach the 50 day moving average. It is important for bulls to climb above the 0.9095 lower band of the ascending channel that will enhance the positive momentum. On the upside immediate resistance stands at 0.9073 today’s high, while more offers will emerge at the 0.9161 the high August 21st. On the downside first support stands at 0.9025 today’s low, while next barrier is at 0.8978 the low from July 29th. Investors holding long positions can sit comfortably as long as the pair trades above 0.90. For those looking to sell the pair a break below 0.90 could be the trigger for a correction down to 0.8950 zone.