Key Points
- The Euro popped higher versus the British Pound and traded above the 0.8800 handle.
- There is a bullish trend line formed on the hourly chart of the EURGBP pair, which may act as a support if the pair correct lower.
- In the Euro Zone, the German Services PMI was released by the Markit Economics.
- The market was expecting no change from 50.6, but there was a rise to 50.9 in Sep 2016.
EURGBP Technical Analysis
The Euro surged higher recently versus the British Pound and traded above a major resistance area of 0.8800. The EURGBP pair comfortably placed above the 21 hourly simple moving average, and there is also a bullish trend line formed on the hourly chart.
If the pair corrects lower, then it may find support near trend line, and the 23.6% fib retracement level of the last wave from the 0.8708 low to 0.8843 high.
Buying dips may be considered as long as the pair is above the trend line and the 21 hourly SMA.
German Services PMI
Today in the Euro Zone, Services PMI, which interviews German executives on the status of sales, employment, and their outlook was released by the Markit Economics.
The market was expecting no change from the last reading of 50.6 in Sep 2016. However, the result was above the forecast, as there was a rise to 50.9. The report stated that it is “upturn in Germany’s service sector slowed further during September, with output and new business rising only slightly. The rate of employment growth remained solid by historical standards, but was nonetheless the weakest since April. Despite this, companies were able to further work through their backlogs”.
The Euro looks like is in a solid uptrend against the British Pound and may continue to rise in the near term.
