- Summary:
- EURGBP seesaws around 0.90 mark as the pair digest the manufacturing PMI data from the UK and Europe. The manufacturing sector in the UK started strong the
EURGBP seesaws around 0.90 mark as the pair digest the manufacturing PMI data from the UK and Europe. The manufacturing sector in the UK started strong the third quarter as the new orders rise for the first time the last five months while the output growth rose to three year highs. The final UK manufacturing PMI reported at 53.3 slightly lower than the expectations of 53.6 for July.
On the other side, the European Monetary Union (EMU) Manufacturing PMI in July registered in at 51.8 better than estimates of 51.1. The Germany Manufacturing PMI came in at 51, beating the expectations of 50 in July. The France Manufacturing PMI also beat the forecasts and came in at 52.4.
The main event for the pair this week is the Bank of England decision with analysts expecting the bank to hold interest rates unchanged and also keep unchanged the quantitative easing.
The risk to the downside for British pound remains as the coronavirus new infections continue to rise in some UK areas. The deadlock in Brexit negotiations with EU might also hurt the pound, while the discussions around negative interest rates in the UK also caps the sterling.
EURGBP Technical Analysis
EURGBP is 0.08% lower at 0.8989, as the traders focus today shifts to the 0.90 mark and the 50-day moving average. Bullish traders need a break above that would enhance the positive momentum. 0.9058 would be the next resistance, which is the high from July 31. More offers would emerge at 0.9135 the high from July 28.
On the contrary, the first support stands at 0.8982 the intraday low. Next target for bears is at 0.8946 the low from July 13. The 100-day moving average would provide the next defense for the pair at 0.8937.
EURGBP Price Daily Chart
