EUR/GBP clings to recovery gains, around mid-0.8800s post-UK PMI
• UK Nov. services PMI falls short of expectations.
• Brexit concerns remain a key drag on GBP.
The EUR/GBP cross trimmed some of its early strong gains to one-week tops but had a rather muted reaction to the latest UK PMI.
The cross moved little and held on to its daily gains near the 0.8840-50 region following the release of UK services PMI, which fell short of consensus estimates and eased to 53.8 in November.
Against the backdrop of renewed Brexit concerns, especially after the UK and EU failed to reach a Brexit deal on Monday, today's downbeat UK data did little to improve sentiment surrounding the British Pound and remained supportive of the pair's strong bid tone.
Meanwhile, a fresh wave of selling around the EUR/USD major, primarily led by some renewed US Dollar buying interest, did little to help the cross to build on its strong recovery move from previous session's over one-month lows.
Technical levels to watch
Any follow-through retracement back below 0.8825 horizontal support might continue to find some support at the very important 200-day SMA near the 0.8800 handle ahead of 0.8775-70 area.
Meanwhile, immediate resistance is pegged near the 0.8865-70 region, above which the cross seems all set to aim towards surpassing the 0.8900 handle and head towards testing 0.8920-25 supply zone.