EURGBP pair early losses and return close to the unchanged level, as the common currency today attracting some bids helped by better manufacturing data from Germany. It looks like the day will end with an indecisive close, neither sellers nor buyers were able to gain control during the session.
The European Monetary Union Manufacturing PMI came in at 49.1 above the forecasts of 47.5 in February. The Manufacturing PMI for February in Germany came in at 47.8, topping the estimates of 44.8. The PMI signals modest growth of the German economy despite the recent slump in exports. The Germany Services PMI came in at 53.3 below the forecasts of 53.8. The Composite PMI registered at 51.1 above the estimates of 50.8.
On the other hand Manufacturing production in the UK rose in February at 51.9 beating the estimates of 49.7. The UK Services PMI came in at 53.3 below the expectations of 53.4 in February.
Now the probability of an interest rate cut from the Bank of England after the recent positive data diminishing at least for the upcoming policy meeting. ECB on the other hand is under pressure for an interest rate cut as the data for the European monetary union have disappointed investors.
EURGBP is 0.02% higher at 0.8370 as the pair rebounds from two-month lows. Today’s action adds nothing new to the technical outlook. The trend is clearly bearish, showing an intact downtrend in short, and medium-term.
On the upside, the first resistance will be met at 0.8384 the daily high. A credible break above might reach the next supply zone at 0.8413 the high from February 20th. The critical resistance level is at 0.8462 the 50-day moving average.
On the downside, immediate support for the EURGBP stands at 0.8343 the daily low. Next support area to watch is the February 19th low at 0.8297, which guards the 2020 lows at 0.8280.