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EUR/GBP: Uptick stalls after upbeat Eurozone data

FXStreet (Mumbai) - The EUR/GBP pair remains well in the positive territory around 0.7010, but has trimmed gains despite the batch of upbeat German and Eurozone PMI numbers.

Rejected at 0.7018

The pair was rejected at 0.7018 even though the preliminary German and Eurozone manufacturing and services PMI reported bettered estimates to highlight the expansion in the private sector activity in November.

The cross recovered from the low of 0.6992 seen in Asia, mainly on account of selling the GBP/USD pair in early Europe. However, the sell-off in the Cable appears to have stalled, while the EUR/USD pair is showing little interest in upbeat data. Consequently, the EUR/GBP is having a hard time maintaining gains.

EUR/GBP Technical Levels

At 0.7010, the immediate resistance is seen at 0.7032 (hourly 200-MA) – 0.7042 (Nov 5 low), above which the gains could be extended to 0.7101 (23.6% of 0.7493-0.6981). On the other side, support is seen at 0.6981 (Nov 18 low), under which the losses could be extended to 0.6931 (July 17 low).

Upbeat Eurozone PMI doesn’t show inflationary pressures - ING

Bert Colijn, Research Analyst at ING, notes that the Eurozone composite PMI increased to a 4.5 year high in November, beating analyst estimates and both manufacturing and service sector growth accelerated.
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