EUR/GBP fast approaching 0.8700 handle after mixed UK data

Haresh Menghani FXStreet

The EUR/GBP cross held on to recovery gains and is now seen making a fresh attempt towards reclaiming 0.8700 handle after mixed UK economic data.

Currently trading around 0.8695 region, the cross caught fresh bids after a higher-than-expected rise in the UK trade deficit. In fact, UK goods trade balance for November came-in to show a deficit of £12.163 billion as compared to £9.885 billion deficit reported in the previous month and £11.20 billion expected.

The disappointing goods trade balance data negated the positive effect of upbeat manufacturing and industrial production data that surpassed expectations and came-in to show a strong monthly growth of 1.2% and 2.1% respectively.

Following yesterday's sharp reversal from two-month high, today's disappointing UK goods trade balance data helped the cross to regain traction on Wednesday.

Technical levels to watch

Immediate downside support is pegged near 0.8665-60 region below which the cross is likely to drift back towards 100-day SMA resistance break-point, now turned support, near 0.8630 region.

On the upside, a follow through buying interest above 0.8700 handle seems to assist the cross back towards two-month high resistance near 0.8765 region, touched on Tuesday.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.8675

75% Bullish
25% Bearish
0% Sideways

Bias Bullish

1 Month

Avg Forecast 0.8685

73% Bullish
27% Bearish
0% Sideways

Bias Bullish

1 Quarter

Avg Forecast 0.8732

64% Bullish
27% Bearish
9% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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