EUR/GBP struggles for direction around 0.90

EUR/GBP wobbles around the 0.90 mark on Monday.
The cross came under pressure after highs in the 0.9150 area.
UK Manufacturing PMI rose to 53.3 for the month of July.

Pablo Piovano FXStreet

The correction lower in both the sterling and its ex European peer is prompting EUR/GBP to gyrate around the 0.90 neighbourhood so far on Monday.

EUR/GBP faces contention near the 100-day SMA

EUR/GBP is trading directionless following two consecutive daily pullbacks and after being rejected from recent tops in the mid-0.9100s.

In the meantime, profit taking is the name of the game in the risk complex in light of the July’s rally, all amidst the moderate pick up in the demand for the greenback. The macro environment remains unaltered, however, with the usual trade-off between the pandemic and prospects of a strong recovery.

Data wise, manufacturing PMIs in Euroland came in above the preliminary readings during last month, while the UK’s PMI rebounded further albeit a tad below initial estimate.

EUR/GBP key levels

The cross is gaining 0.01% at 0.8998 and faces the next hurdle at 0.9148 (monthly high Jul.27) followed by 0.9175 (monthly high Jun.21) and finally 0.9324 (2019 high Aug.12). On the downside, a breach of 0.8980 (weekly low Jul.31) would expose 0.8937 (monthly low Jul.10) and then 0.8864 (monthly low Jun.9).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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