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FxWirePro: EUR/GBP pivotal at 50-DMA support, upbeat UK Final Services PMI could buoy the British pound

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.26% higher on the day at 0.9076 at around 10:00 GMT, capped between 5 and 50 DMAs.

Data released from IHS Markit earlier today confirmed UK Final Services PMI was revised higher in September.

The seasonally adjusted IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) was revised higher to 56.1 in September from a 55.1 in the initial reading, beating expectations at 55.0.

Upbeat data had little immediate impact on the British pound, the EUR/GBP was holding gains above 0.90 handle.

Upbeat market sentiment on US President Donald Trump's recovery news keeps the single currency supported.

Price action is retreating from multi-week highs at 0.9291 hit on Sept 11th trade. The pair remains pivotal at 50-DMA and cloud support.

Momentum indicators are bearish. RSI is below 50 and any breach at 50-DMA support could drive prices lower.

Immediate support below 50-DMA and cloud lies at 110-EMA at 0.8997). Next bear target lies at 0.8925 (trendline support). 

Break below 200-DMA (0.8850) will open downside for the pair. Failure to break below cloud negates bearish bias.
 

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