EUR/GBP keeps mild red after UK services PMI

Haresh Menghani FXStreet

The EUR/GBP cross failed to gain fresh traction and halted its recovery move from the lowest level since July 22 following the release of UK services PMI.

Currently trading with mild bearish bias, around 0.8360 region, the cross struggled to extend its recovery after UK services PMI print for the month of November surpassed expectations and came-in at 55.2 as compared to 54.2 expected and 54.5 recorded in the previous month.

The cross, however, remained over 60-pips off multi-month lows touched during early Asian session as market seems to have digested early jitters in wake of a 'NO' vote victory in Sunday's Italian referendum on constitutional reforms.

Investors will remain focused on any fresh news / developments surrounding the Italian referendum ahead of this week's key ECB meeting on Thursday.

Technical levels to watch

Renewed weakness below 0.8335 region (Sept. 6 low) is likely to drag the cross back towards 0.8300 handle, which if broken has the potential to continue dragging the cross further towards 0.8250 support area (July 14 low). On the upside, recovery momentum above session peak resistance near 0.8385 is likely to boost the pair beyond 0.8400 handle towards its next major hurdle near 0.8460 region.

Sell 60%

Buy 40%

Avg Sell Price 0.8583

Avg Buy Price 0.8532

Liquidity Distribution

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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