EUR/GBP clocks fresh 44-month high

EUR/GBP pair extended Tuesday’s gain to a fresh 44-month high of 0.8815 in Asia as the bid tone around EUR gathered pace on ECB QE taper talk.

Eyes services PMI release

The focus today is on the Eurozone and UK services PMI release. Out of the two, the cross is likely to be more sensitive to the UK services PMI number, given that the talk of the ECB taper is likely to overshadow Eurozone services PMI release.

The cross was last seen trading around 0.8810 levels. A move above 0.8815 would mean 5-year high.

EUR/GBP Technical Levels

Acceptance above 0.8815 (today’s high) would expose 0.8831 (Oct 2011 high) – 0.8857 (Sep 2011 high). A violation there could yield 0.89 (psychological level). On the lower side, breakdown of support at 0.88 could yield a move lower to 0.8744 (hourly 50-MA), under which losses could be extended to 0.87 (zero figure).