EURGBP adding 0.29 percent at 0.9129 after the Bank of England keep interest rates unchanged as widely expected, amid increasing odds of a no deal Brexit.
In macro news earlier the United Kingdom Markit Manufacturing PMI registered at 48 above expectations (47.7) in July. European PMI’s disappointed for one more time; Germany Markit Manufacturing PMI came in at 43.2, below expectations of 45.4 in July, France Markit Manufacturing PMI came in at 49.7 also below forecasts of 50 in July. Italy Markit Manufacturing PMI came in at 48.5, topping expectations of 48 in July. Spain Markit Manufacturing PMI came in at 48.2, also above expectations of 48 in July. The EU Markit Manufacturing PMI came in at 46.5, above forecasts of 46.4 in July.
On the technical analysis side the short term momentum is positive for the pair as it trades above the major moving averages. The pair has been on a huge run higher since May after bottoming out around 0.8500 in a move to hit a high of 0.9189. On the upside immediate resistance stands at 0.9189 the high from July 30, while more offers will emerge at the 2017 high at 0.9306, followed by the 0.9582 level. On the downside first support stands at 0.9099 today’s low while next barrier is at 0.8942 the 50 hour moving average. Traders holding long positions can sit comfortably as long as the pair trades above 0.91. For those looking to sell EURGBP a break below 0.91 could be the signal for a correction down to 0.90 zone.Don’t miss a beat! Follow us on Twitter.