Given the euro was down against the British pound recently—as the latter one managed to recover some ground—the staff at FXTimes.com takes a technical look at the pair and outlines what might have now made it very difficult—as of Thursday—for the pair’s sellers to gain traction.
- Euro, after trading towards 0.7700 against the British pound, found support and started to correct higher.
- The EUR/GBP pair is heading towards a major resistance area, which could stall the current upside move.
- Thursday, 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 February 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.
By the Staff at FXTimes.com
Tickers Mentioned: Tickers: EUR-GBP