EUR/GBP: bearish bias below 0.86 handle post key UK data

Currently, EUR/GBP is trading at 0.8542, down -0.43% on the day, having posted a daily high at 0.8594 and low at 0.8532.

EUR/GBP is drifting lower while in a consolidation of the supply from 0.8590 that met aforementioned lows. Sterling has been bid since the release of stronger than expected services and composite PMI’s. "The upside surprise should help to mitigate some of the recent concerns that had accompanied the broad, downward turn in PMI’s from their December peaks," argued analysts at Scotiabank." 

EUR/GBP levels

Analysts at Commerzbank explained that EUR/GBP's near term outlook is technically negative: "The market is bouncing from a plethora of support offered by the 0.8452 support line, the 0.8439 2015-2017 uptrend and the 0.8410 55 week ma together the 0.8401 February low. Initial resistance lies at 0.8588/90 the 55 and 200 day moving averages and then 0.8709 and 0.8764 (downtrends) and we suspect that this will cap for now. Note intraday Elliott wave indicates that the market will fail here."