EUR/GBP keeps range near 0.7380 on UK PMI

By FXStreet FXStreet (Mumbai) – The cross in the EUR/GBP keeps losses and strives hard to conquer 0.74 handle in the European morning following the release of UK construction PMI which missed market expectations.

EUR/GBP capped below 0.7395

Currently, the EUR/GBP pair trades -0.24% lower at 0.7375, unable to extend beyond 0.7385 resistance zone. The EUR/GBP cross remains in the red as the below estimates UK construction sector report did little to lift the sentiment around the pound.

In August, business activity in the sector, accounting for some 6.3% of total GDP, again remained firmly above the contraction line, with the Markit/CIPS headline PMI hitting 57.3 points, below forecasts of a 57.5 reading.

The cross remains pressured largely on the back of broad euro weakness on stabilizing European equities which adds to the improved risk sentiment, diminishing the allure of the safe-havens such as the single currency.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located at 0.7344 (Today’s Low) below that at 0.7299 (Sept 1 Low).
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Source:: FX Street