Forex: EUR/GBP rallies towards 0.8700

FXstreet.com (Barcelona) - While the EUR/USD is back at strength after a quick return to 1.3586 and is extending gains higher (currently at 1.3682), the GBP/USD nose dived to 1.5737 low. Both together mean a tremendously strong EUR/GBP taking over the market by +1.48% on the day, currently at 0.8696 high.

UK manufacturing PMI by Markit. Data dropped from 51.2 (revised from 51.4) to 50.8 (consensus of 51.0). EMU Markit manufacturing PMI rose from 46.1 to 47.8 (consensus of 47.4).

“The strong resistance area between 0.8506 (24/02/2012 high) and the high of the long-term declining trendline (linking the January 2009 peak with the one on July 2011) and the general overbought conditions suggest a limited medium-term upside potential”, wrote MIG Bank analyst Bijoy Kar.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS