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EUR/USD

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EUR/GBP refreshes session tops on dismal UK macro data, lacks follow-through

Haresh Menghani FXStreet

• Dismal UK macro data prompts some fresh selling around the British Pound.
• Upside remains capped amid fears of an economic slowdown in the Euro-zone.

The EUR/GBP cross held on to its mildly positive tone through the early European session and refreshed session tops, around the 0.8770-75 region post-UK macro releases.

The British Pound remained on the back-foot, rather lost some ground after data released this Monday showed that the UK economy contracted 0.4% m/m in December, with the quarterly growth rate slowing to 0.2% during the fourth quarter of 2018 and yearly rate also falling more than expected to 1.3%.

Adding to the disappointment, a sharp deceleration in the UK industrial and manufacturing production data, coupled with slightly higher than expected UK trade deficit figures further dented the already weaker sentiment surrounding the British Pound and provided a minor lift in the last hour.

The uptick, however, lacked any strong follow-through amid lack of any strong buying around the shared currency, which continues to be weighed down by growing concerns about the health of the Euro-zone's economic growth, especially after the European Commission lowered its growth forecasts last Thursday.

Hence, it would be prudent to wait for a strong follow-through buying before traders start positioning for any further appreciating move amid uncertainty surrounding Britain's exit from the European Union.

Technical levels to watch

EUR/GBP

Overview:
    Today Last Price: 0.8758
    Today Daily change %: 0.06%
    Today Daily Open: 0.8753
Trends:
    Daily SMA20: 0.8768
    Daily SMA50: 0.8899
    Daily SMA100: 0.8864
    Daily SMA200: 0.8865
Levels:
    Previous Daily High: 0.8766
    Previous Daily Low: 0.8741
    Previous Weekly High: 0.8822
    Previous Weekly Low: 0.8726
    Previous Monthly High: 0.9119
    Previous Monthly Low: 0.8617
    Daily Fibonacci 38.2%: 0.8751
    Daily Fibonacci 61.8%: 0.8757
    Daily Pivot Point S1: 0.8741
    Daily Pivot Point S2: 0.8728
    Daily Pivot Point S3: 0.8715
    Daily Pivot Point R1: 0.8766
    Daily Pivot Point R2: 0.8779
    Daily Pivot Point R3: 0.8792

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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