- EUR/GBP hit a daily high of 0.8575 (20-day SMA) and then pulled back to 0.8550.
- The German, French and Spanish HCOB services PMIs for June came in disappointing results.
- The British index showed an expansion, as expected by the markets.
Following the publication of the Purchasing Managers’ Index (PMI) data for European services, the pair EUR/GBP He gave up his daily earnings. The pair initially reached a high of 0.8575, where the 20-day SMA sits, but subsequently pulled back to 0.8550. Disappointing results from the Hamburg Commercial Banks (HCOB) Services PMIs in Germany, France and Spain contributed to the reversal, while the UK index met expectations by entering expansion territory.
The Euro lost ground after the disappointing Eurozone services PMIs.
During the European session, the HCOB reported that the services PMIs for France and Spain for June came in below expectations, at 47.2 and 53.4 respectively. Furthermore, the German and Italian indices were unchanged from their previous figures at 54.1 and 52.2, respectively. Overall, the data for the Eurozone stood at 52, compared to the 52.4 expected, which reflects a slowdown, but remains in the expansion zone.
By contrast, the UK Services PMI published by the Chartered Institute of Purchasing & Supply (CIPIS) and S&P Global came in at 53.7, as expected.
For the rest of the week, investors will be watching the release of Eurozone retail sales for June on Thursday and the speeches by De Guindos and Lagarde from the European Central Bank on Friday. On the UK calendar, market participants will see the release of the June construction PMI and housing data for Friday in June.
EUR/GBP levels to watch
According to the daily chart, the technical outlook favors bears. Bulls are struggling to reignite their momentum as the Moving Average Convergence Divergence (MACD) prints declining green bars while the Relative Strength Index (RSI) heads south into negative territory.
Support levels to watch: 0.8540, 0.8525,0.8520
Resistance levels to watch: 0.8575 (20-day SMA), 0.8590, 0.8600
EUR/GBP Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
