EUR/GBP - Four-day drop stalls at 200-day MA, eyes UK PMI
- EUR/GBP is attempting a rebound of the 200-day MA.
- Focus on UK and EZ PMI.
The 200-day MA of 0.8795 has come to the rescue of EUR/GBP, although the rebound could fall apart if the UK PMI betters estimates.
As of writing, the currency pair is at 0.8815. It clocked a high/low of 0.8820/0.8788 today. The four-day losing streak associated with Brexit optimism has stalled for now.
Focus on UK PMI
The UK November PMI could beat estimates by a wide margin as lead indicators (CBI survey) reported November manufacturing orders at a 30-year high. A big beat could turn 200-day MA support into resistance.
Meanwhile, the final EZ PMI numbers may not have much impact on the currency pair, unless there is a significant revision to the preliminary estimate.
EUR/GBP Technical Levels
A break above 0.8852 (5-day MA) would open up upside towards 0.8870 (10-day MA) and 0.8876 (50-day MA). On the other hand, a break above 0.8795 (200-day MA) could yield a sell-off to 0.8733 (Nov. 1 low) and 0.87 (zero levels).