The EURGBP pair, trading at 0.85458, maintains a positive stance close to 0.8546 after the release of disappointing PMI data.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• EUR/GBP holds positive ground near 0.8546 following the weaker-than-expected PMI data.

The pair currently trades last at 0.85458.

The previous day high was 0.8566 while the previous day low was 0.8493. The daily 38.2% Fib levels comes at 0.8538, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8521, expected to provide support.

The EUR/GBP cross gains traction for the second consecutive day during the early Asian session on Thursday. The cross currently trades near 0.8546, up 0.12% on the day. Market participants will digest the economic data ahead of the German Gross Domestic Product Q2 and the Europen Central Bank (ECB) President Christine Lagarde’s speech on Friday.

The first reading of the Eurozone Composite PM for August came in at 47.0, worse than the expectation of 48.5. In the same period, the Manufacturing PMI improved to 43.7, better than expectations of 42.6 while Services PMI fell to 48.3, below the estimation of 50.5. The reading below the 50.0 threshold indicates the contracting territory.

However, the bloc’s service sector experienced its first decline in activity this year. The market anticipated that the ECB would pause the interest rate in its September meeting, but open the door for additional rate hikes by year-end.

On the other side, the Pound Sterling was weakened following the UK economic data. The S&P Global Composite PMI for August came in at 47.9, below the expectation of 50.3. This is the first time since January that the figure stands below 50. The Bank of England (BoE) has hiked interest rates 14 times since December 2021. However, the fear that aggressive tightening monetary policy will impact the UK economy, market players are now forecasting another rate hike to 5.5% in the September meeting.

Market players await the German Gross Domestic Product Q2 due on Friday. The quarterly figure is expected to remain the same at 0% while the annual figure is expected to stay at -0.2%. Later in the day, ECB President Christine Lagarde’s speech on Friday will be the key highlight.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8546 at the time of writing. Pair opened at 0.8537 and is trading with a change of 0.11 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8584, 50 SMA 0.8582, 100 SMA @ 0.8651 and 200 SMA @ 0.8716.

The previous day high was 0.8566 while the previous day low was 0.8493. The daily 38.2% Fib levels comes at 0.8538, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8521, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8498, 0.8459, 0.8425
• Pivot resistance is noted at 0.8571, 0.8605, 0.8644

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group