EUR/GBP surrenders intraday gains despite mostly upbeat Eurozone PMIs

EUR/GBP met with some supply following the release of softer German Manufacturing PMI.
Upbeat Services PMIs added credence to the optimistic outlook and might help limit losses.
Brexit uncertainties held the GBP bulls on the defensive and further extended some support.

Haresh Menghani FXStreet

The EUR/GBP cross surrendered modest intraday gains and dropped to the lower end of its daily trading range, around the 0.8615-10 region during the early European session.

The cross struggled to capitalize on its early uptick, instead met with some fresh supply near the 0.8630 region in reaction to softer-than-expected German Manufacturing PMI print for May. In fact, the gauge fell to 64.0 during the reported month from 66.2 prior and pointed to the slowing pace of expansion in Germany's manufacturing sector.

The softer reading, to a larger extent, was offset by stronger than anticipated readings for the region's dominant services industry. Nevertheless, the data indicated that the further lifting of virus restrictions boosted business activity and added credence to the optimistic outlook, which should help limit the downside for the EUR/GBP cross.

On the other hand, the British pound was supported by Friday's upbeat UK Retail Sales figures for April. Following this week's stronger employment details/CPI report, the data reinforced expectations for a stronger economic recovery. That said, the uncertainty over the post-Brexit agreement on Northern Ireland held the GBP bulls from placing aggressive bets.

Even from a technical perspective, the EUR/GBP cross has been oscillating in a range over the past three trading sessions. This further warrants some caution before positioning for any firm near-term direction. Market participants now look forward to the release of flash UK PMI prints for some meaningful trading opportunities.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8614
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	0.8616

Trends
Daily SMA20	0.8648
Daily SMA50	0.8621
Daily SMA100	0.8703
Daily SMA200	0.8871

Levels
Previous Daily High	0.8643
Previous Daily Low	0.8612
Previous Weekly High	0.87
Previous Weekly Low	0.8561
Previous Monthly High	0.872
Previous Monthly Low	0.8472
Daily Fibonacci 38.2%	0.8624
Daily Fibonacci 61.8%	0.8631
Daily Pivot Point S1	0.8605
Daily Pivot Point S2	0.8593
Daily Pivot Point S3	0.8574
Daily Pivot Point R1	0.8635
Daily Pivot Point R2	0.8655
Daily Pivot Point R3	0.8666

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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