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23 Nov 2015
EUR/GBP: rangeplay continues ahead of PMI data
FXStreet (Mumbai) - The EUR/GBP pair finds itself stuck in the 4-day range of 0.6980-0.7030 ahead of the preliminary PMI reports due across the Eurozone today.
Focus on German PMI
The primary focus is likely to be on the German PMI reading. The Eurozone’s largest economy has slowed offlate, mainly on account of the weakness in China. The preliminary PMI for November could offer more clues on the export orders and price pressure.
Meanwhile, the demand for the EUR could also be influenced by the risk-on/risk-off in the European equities.
EUR/GBP Technical Levels
The cross currently trades around 0.70. The immediate resistance is located at 0.7030 (upper end of the rang+hourly 200-MA), above which the pair could rise to 0.7079 (Nov 16 high). On the other side, support is seen at 0.6980 (range support), under which the pair could test 0.6951 (Aug 5 low).
Focus on German PMI
The primary focus is likely to be on the German PMI reading. The Eurozone’s largest economy has slowed offlate, mainly on account of the weakness in China. The preliminary PMI for November could offer more clues on the export orders and price pressure.
Meanwhile, the demand for the EUR could also be influenced by the risk-on/risk-off in the European equities.
EUR/GBP Technical Levels
The cross currently trades around 0.70. The immediate resistance is located at 0.7030 (upper end of the rang+hourly 200-MA), above which the pair could rise to 0.7079 (Nov 16 high). On the other side, support is seen at 0.6980 (range support), under which the pair could test 0.6951 (Aug 5 low).