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EURGBP Rebounds After Weak UK PMI’s Figures

ftse 100

EURGBP trading 0.32% higher at 0.8593 just above the six-month lows as the pair reacts positively to disappointing PMI’s from UK; the United Kingdom Manufacturing PMI came in at 48.3, below analysts forecasts of 49 for November, the Services PMI came in at 48.6, below forecasts of 50 in November.

On the other hand, the European Monetary Union Manufacturing PMI came in at 46.6 topping forecasts of 46.4 in November while the Services PMI came in at 51.5 below expectations of 52.5 in November. The German Manufacturing PMI surprised positively as it came in at 43.8 topping forecasts of 42.9 in November.

EURGBP Technical Outlook

EURGBP rebounds today from levels that we haven’t seen the last six as the short term momentum is bearish on stronger GBP as the UK is heading to general elections.

Buyers will meet the first resistance at 0.8593 today’s top while more offers expected at  0.8656 the high from November 11th which protect the 50-day moving average at 0.87123. Investors looking to buy the pair might enter a long position if the  EURGBP breaks convincingly above the 50-day moving average.

On the other hand, first support stands at 0.8560 the daily low and then at 0.8520 the lows from November 18th. The next support level stands at 0.8489 the low from May 5th. Investors holding short positions might sit comfortably as long as the pair trades below the 0.8600 mark.