- Euro after trading towards 0.7700 against the British Pound found support and started to correct higher.
- The EURGBP pair is heading towards a major resistance area, which could stall the current upside move.
- Today, the UK services PMI report was published by the Chartered Institute of Purchasing & Supply and the Markit Economics.
- The outcome was discouraging, as there was a decline in the PMI from 55.6 to 52.7 for Feb 2016.
The Euro was down against the British Pound recently, as the latter one managed to recover some ground. The pair formed a base near 0.7692 and started to move higher. It is now heading towards a bearish trend line on the hourly chart, which might act as a resistance.
The 50 hourly simple moving average is also below the trend line, and around the 50% Fib retracement level of the last drop from the 0.7813 high to 0.7692 low.
On the downside, the 0.7720-00 level can be seen as an important support area, which must hold in the short term.
UK Services PMI
Earlier today, the UK saw a major economic release in the form of the services PMI. It is an important indicator of the economic situation in the services sector. The report published by the Chartered Institute of Purchasing & Supply and the Markit Economics stated that there was a decrease in the PMI from 55.6 to 52.7 in Feb 2016.
The report added that the ‘12-month outlook for the sector improved to a three-month high, but remained weaker than the long-run survey average. Inflationary pressures remained weak, both in terms of input prices and prices charged by service providers”.
There is hardly any positive to take for the British Pound bulls, so it may be very difficult for the EURGBP pair sellers to gain traction.