EURGBP Lower After European Services PMI Bloodbath


EURGBP continues lower for the ninth consecutive session after European Monetary Union Services PMI came in at 26.4 below the expectations of 28.4 in March. Global demand collapsed on the back of the spread of the coronavirus outbreak. The Composite PMI came in at 29.7, below the forecasts of 31.4.

After manufacturing, the Germany Services PMI also slumped to 31.7 a historic low, and below the expectations of 34.3 in March. The services employment is falling at the fastest rate in almost 23 years in Germany. While in Italy the services sector is in free fall, it came at 17.4 in March well below the expectations of 22. France Services PMI came in at 27.4, below the expectations of 29.

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EURGBP Price Technical Levels to Watch  

EURGBP is 0.08% lower at 0.8758, as the selling pressure persists, while today test the critical 50-day moving average support. A close today below 0.8752 would attract more sellers to join the action. If the pair bounce from the 50-day moving average we might see a move up to 0.89.    

On the downside, first support for EURGBP pair stands at 0.8740 the daily low. A move below might test the next support zone at 0.8678 the 50-day moving average. More bids would emerge at 0.8591 the 100-day moving average.  

On the flip side, the initial resistance stands at 0.8770 the daily high. A break above might challenge the next hurdle at 0.8856 the high from March 2. A break above that resistance might test the next hurdle at 0.8913 the high from April 1.  

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