EUR/GBP remains vulnerable with upside attempts capped below 0.8590
- Euro recovery attempts fail below 0.8600.
- Eurozone Services PMI revised higher, yet into contraction levels.
- The broader trend remains bearish with 0.8550 support in play.
The euro remains depressed near three-month lows against the Pound Sterling. The pair;’s mild recovery attempt seen during Tuesday’s early European session has found resistance at 0.8590 before easing to the mid-range of 0.8900.
UK services activity increases beyond expectations
Eurozone’s November Services PMI data has been revised upwards, with all major country members registering better than expected levels than previously estimated. Business activity in the sector, however, has contracted for the fourth consecutive month which is not good news for the Euro.
In contrast,, the UK services sector activity expanded in November and has been revised to 50.9 from the previously estimated 50.5 from 49.5 in October, which has provided some support to the Pound.
The technical picture shows a bearish Euro with no clear sign of a trend change on sight. Next support is at 0.8550 and below here, 0.7500 and 0.8455.
On the upside, 0.8590 and 0.8620 are the nearest resistance levels.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
