4 Nov 2013
EUR/GBP lower on highest UK PMI since September 2007
FXstreet.com (Athens) – The EUR/GBP moved south after the UK data showed that the UK PMI figure released at highest area since 2007.
The EUR/GBP was dragged down roughly pips on the UK data release and despite the fact that simultaneously the Euro zone’s Sentix Investor Confidence released at much better level than both the previous and expected ones (9.3 versus, 6.1 previous, 6.2 estimation). On the other hand, as already depicted above the UK PMI data released upbeat at 59.4 versus 58.9 the prior one, while the estimation was at 58.7). The cross is well under the 200-daily SMA (0.8514), the 21-daily SMA (0.8490) as well as the 10-daily SMA (0.8516), but as long as it is clearly above the 0.8445 (On Friday’s two weeks low), it might be difficult to continue the bearish momentum.
Technical Perspective on EUR/GBP
Karen Jones Head Technical Analyst of Commerzbank suggests that “EUR/GBP EUR/GBP last week saw quite a reversal from the 0.8585 peak and plunged lower. Last weeks move looked directional and we would allow for further losses near term. The intraday Elliot wave count has altered and is suggesting the market will now struggle on rallies to .8475/95. We would allow for losses to 0.8459 then 0.8388, the 61.8% and 78.6% retracements of the move up from the October low.”
The EUR/GBP was dragged down roughly pips on the UK data release and despite the fact that simultaneously the Euro zone’s Sentix Investor Confidence released at much better level than both the previous and expected ones (9.3 versus, 6.1 previous, 6.2 estimation). On the other hand, as already depicted above the UK PMI data released upbeat at 59.4 versus 58.9 the prior one, while the estimation was at 58.7). The cross is well under the 200-daily SMA (0.8514), the 21-daily SMA (0.8490) as well as the 10-daily SMA (0.8516), but as long as it is clearly above the 0.8445 (On Friday’s two weeks low), it might be difficult to continue the bearish momentum.
Technical Perspective on EUR/GBP
Karen Jones Head Technical Analyst of Commerzbank suggests that “EUR/GBP EUR/GBP last week saw quite a reversal from the 0.8585 peak and plunged lower. Last weeks move looked directional and we would allow for further losses near term. The intraday Elliot wave count has altered and is suggesting the market will now struggle on rallies to .8475/95. We would allow for losses to 0.8459 then 0.8388, the 61.8% and 78.6% retracements of the move up from the October low.”