FxWirePro: EUR/GBP retreats from 1-week peak following mixed UK PMI readings
The euro eased from a 1-week peak against the British pound following the release of mixed UK economic data. A preliminary estimate showed the IHS Markit/CIPS UK Manufacturing PMI rose to 51.9 in February from 50.0 in th…
The euro eased from a 1-week peak against the British pound following the release of mixed UK economic data.
A preliminary estimate showed the IHS Markit/CIPS UK Manufacturing PMI rose to 51.9 in February from 50.0 in the previous month, surpassing market consensus of 49.7.
However, the IHS Markit/CIPS UK Services PMI eased to 53.3 in February from 53.9 in January and slightly below market expectations of 53.4.
EUR/GBP is trading 0.1 percent down at 0.8359, having hit a high 0.8415 in the previous session, its highest since February 13.
On Thursday, the pair ran into major resistance at 21-DMA to closer at 0.8369.
Investors await developments on Britain's trade talks with the European Union and government plans to boost spending.
Momentum indicators are bearish: RSI weak at 43, MACD supports downside and Stochs indicate a bearish crossover.
Immediate resistance is located at 0.8387, a break above could take it near 0.8400.
On the downside, support is seen at 0.8348, a break below could drag it till 0.8329.
Recommendation: Good to sell on rallies around 0.8367, with stop loss of 0.8381 and target price of 0.8331.
