Key Points
- The Euro is currently trading in a range with support on the downside near 0.8430 against the British Pound.
- There is a major bullish trend line with support at 0.8435-30 formed on the hourly chart of EURGBP.
- In the UK today, the PMI Construction for April 2017 was released by the Chartered Institute of Purchasing & Supply and Markit Economics.
- The result was above the forecast, as the PMI Construction rose from the last reading of 52.2 to 53.1.
EURGBP Technical Analysis
The Euro recently traded towards 0.8485 against the British Pound, and failed to test the 0.8500 level. Later, the EURGBP traded lower before forming a range with support at 0.8430 and resistance near 0.8465 and 0.8480.
The pair is currently trading just above a major bullish trend line with support at 0.8435-30 formed on the hourly chart.
If the trend line support holds, the pair may bounce towards the 50% Fib retracement level of the last decline from the 0.8476 high to 0.8436 low at 0.8456. Above 0.8456, the pair may attempt a break above a bearish trend line at 0.8465.
UK Construction PMI
Recently in the UK, the PMI Construction for April 2017 was released by the Chartered Institute of Purchasing & Supply and Markit Economics. The forecast was lined up for a minor decline from the last reading of 52.2 to 52.0.
The result was above the forecast, as the PMI Construction rose from the last reading of 52.2 to 53.1. Commenting on the report, a Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, Tim Moore, stated “April’s survey reveals a positive start to the second quarter of 2017, with a robust upturn in civil engineering activity helping to boost the construction industry. There were also more encouraging signs from the house building sector, as growth recovered to its strongest so far this year”.
Overall, the EURGBP may bounce back if remains above 0.8430, else there can be a move towards 0.8400.
