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2 Nov 2015
EUR/GBP drops ahead of UK data
FXStreet (Mumbai) - The buying interest on the GBP spiked, pushing the EUR/GBP pair into losses ahead of the data in the UK, which could show the manufacturing activity growth slowed down slightly in October.
Losses capped by upbeat EZ PMIs
The downside appears capped by a slightly upbeat manufacturing PMI reports released across the Eurozone. The German and Eurozone PMIs were revised slightly upwards from the preliminary upwards, which helped the EUR/USD pair add 10-15 pips.
However, that was not enough to counter the rise in the GBP/USD pair to a high of 1.5460. The immediate focus now is on the UK October final PMI manufacturing report.
EUR/GBP Technical Levels
At 0.7137, the immediate support is seen at 0.7123 (previous day’s low), under which the pair could extend the drop to 0.71 handle. A break below the same would expose 0.7054 (July 6 low). On the higher side, 0.7144 (Oct 29 low) could offer resistance followed by a rise to 0.7177 (5-DMA).
Losses capped by upbeat EZ PMIs
The downside appears capped by a slightly upbeat manufacturing PMI reports released across the Eurozone. The German and Eurozone PMIs were revised slightly upwards from the preliminary upwards, which helped the EUR/USD pair add 10-15 pips.
However, that was not enough to counter the rise in the GBP/USD pair to a high of 1.5460. The immediate focus now is on the UK October final PMI manufacturing report.
EUR/GBP Technical Levels
At 0.7137, the immediate support is seen at 0.7123 (previous day’s low), under which the pair could extend the drop to 0.71 handle. A break below the same would expose 0.7054 (July 6 low). On the higher side, 0.7144 (Oct 29 low) could offer resistance followed by a rise to 0.7177 (5-DMA).