EUR/GBP testing highs near 0.8460 on PMI

The softer tone in the Sterling post-PMI has allowed EUR/GBP to challenge daily highs in the 0.8460 area.

EUR/GBP supported around 0.8420

The cross has turned positive after UK’s manufacturing PMI has dropped to 48.2 for the month of July, missing forecasts at 49.1 and down from May’s 49.1, as ‘Brexit’ consequences continues to weigh on sentiment.

Back to the euro area, German and EMU final manufacturing PMIs have come in on the firmer side, while Italian and Spanish gauges have missed consensus, removing some tailwinds from the euro.

EUR/GBP key levels

The cross is now up 0.05% at 0.8451 and a surpass of 0.8479 (high Jul.29) would open the door to 0.8627 (2016 high Jul.6) and then 0.8651 (high Aug.28 2013). On the other hand, the initial support lines up at 0.8248 (low Jul.14) ahead of 0.8233 (23.6% Fibo of 0.7595-0.8627) and finally 0.8111 (50% Fibo of 0.7595-0.8627).