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23 Oct 2015
EUR/GBP testing lows near 0.72 on mixed German data
FXStreet (Mumbai) - The cross in the EUR/GBP keeps range just ahead of the 0.72 handle in the European morning, as the shared currency shows little reaction to a mixed set of German flash PMI reports.
EUR/GBP remains pressured after dovish ECB
Currently, the EUR/GBP pair loses -0.08% and trades at 0.7210, heading towards daily lows struck at 0.7200 at Tokyo open. The EUR/GBP cross halted its recovery hourly 20-SMA located at 0.7222 and continues to consolidate to the downside while markets digest the latest German PMI readings.
Germany’s October flash PMI fell to 51.6, down from September's final reading of 52.3 points and missed estimates of a decrease to 51.7 points. While services sector improved to 55.2 points against 54.0
expectations.
On the GBP-side, the pound attempts a tepid-recovery from the ECB-led fall versus the greenback and overs around 1.54, keeping the cross slightly pressured. While markets now await Euro zone flash PMI reports for further momentum on the cross.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7222 (hourly 20-SMA), above which it could extend gains to 0.7296/0.7300 (hourly 50-SMA & psychological levels). To the downside immediate support might be located at 0.7200 (round number) below that at 0.7148 (Aug 21 Low).
EUR/GBP remains pressured after dovish ECB
Currently, the EUR/GBP pair loses -0.08% and trades at 0.7210, heading towards daily lows struck at 0.7200 at Tokyo open. The EUR/GBP cross halted its recovery hourly 20-SMA located at 0.7222 and continues to consolidate to the downside while markets digest the latest German PMI readings.
Germany’s October flash PMI fell to 51.6, down from September's final reading of 52.3 points and missed estimates of a decrease to 51.7 points. While services sector improved to 55.2 points against 54.0
expectations.
On the GBP-side, the pound attempts a tepid-recovery from the ECB-led fall versus the greenback and overs around 1.54, keeping the cross slightly pressured. While markets now await Euro zone flash PMI reports for further momentum on the cross.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7222 (hourly 20-SMA), above which it could extend gains to 0.7296/0.7300 (hourly 50-SMA & psychological levels). To the downside immediate support might be located at 0.7200 (round number) below that at 0.7148 (Aug 21 Low).