EUR/GBP sticks to gains near 0.89 handle post-UK GDP
• Prelim EZ PMI prints bettered expectations.
• UK GDP growth matches original estimates.
The EUR/GBP gains some strong positive traction on Thursday and moved back above the 0.8900 handle.
The cross traded with a positive bias for the third consecutive session and was being supported by mostly better-than-expected prelim Euro-zone PMI prints for November.
The cross, however, had a rather muted reaction to revised UK GDP growth figures, which matched original estimates and came in to show q-o-q growth of 0.4% in the third-quarter.
Currently holding stable around the 0.8900 handle, traders now look forward to the release of ECB monetary policy meeting accounts (minutes), which should infuse some volatility around the EUR crosses and provide some short-term trading opportunities.
Technical levels to watch
A follow-through momentum beyond 0.8925 level could get extended towards the 0.8960 hurdle, above which the cross is likely to dart towards reclaiming the key 0.90 psychological mark.
On the flip side, 0.8880-75 zone now seems to protect the immediate downside, which if broken could accelerate the fall towards 0.8840 horizontal support en-route the 0.8800 round figure mark.