FxWire Pro: EUR/GBP edges above 0.77 handle, on track to test 100-DMA at 0.7792
EUR/GBP has bounced off major trendline support at 0.7570 and is attempting to reclaim the 0.77 handle. Pair has hit highs of 0.7703 and is currently trading at 0.7691, eyes 100-DMA at 0.7792. UK manufacturing PMI is due…
EUR/GBP has bounced off major trendline support at 0.7570 and is attempting to reclaim the 0.77 handle.
Pair has hit highs of 0.7703 and is currently trading at 0.7691, eyes 100-DMA at 0.7792.
UK manufacturing PMI is due later today and markets expect uptick higher to 49.9 from a sharp drop seen in April to 49.2 points.
Any miss on the data could weigh heavily on the pound raising the risk for downside in EUR/GBP. Break below 0.7570 could see sharp fall to 0.7425 levels.
Technicals support upside in the pair, weakness only below 0.7570.
Pair now finds immediate support and resistance at 0.7656 (10-DMA) and 0.7716 (Feb 5th highs).
Recommendation: Go long on break above 0.77, SL: 0.7655, TP: 0.7750/0.7790