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8 Dec 2015
EUR/GBP nears Fib resistance ahead of UK data
FXStreet (Mumbai) - The EUR/GBP pair rose to its session highs near 0.7237 (50% of 0.7493-0.6981) on the back of China-led risk-off and weakness in Cable ahead of the UK industrial production data.
Eyes UK data
The data due in the UK is expected to show the factory output stalled in October. In annualised terms a slight improvement is expected. If the upbeat October Manufacturing PMI report is anything to go by, then the odds of a better-than-expected manufacturing production figure increase.
Post UK data, the focus could shift back to the sentiment in the European equity markets. As of writing, the major equity indices in Europe traded moderately lower.
EUR/GBP Technical Levels
At 0.7233, the immediate resistance is seen at 0.7237 (50% of 0.7493-0.6981), above which the gains could be extended to 0.7278 (38.2% of 0.6931-0.7493). On the other hand, a break below 0.7212 (50% of 0.6931-0.7493) would expose 50-DMA at 0.7191.
Eyes UK data
The data due in the UK is expected to show the factory output stalled in October. In annualised terms a slight improvement is expected. If the upbeat October Manufacturing PMI report is anything to go by, then the odds of a better-than-expected manufacturing production figure increase.
Post UK data, the focus could shift back to the sentiment in the European equity markets. As of writing, the major equity indices in Europe traded moderately lower.
EUR/GBP Technical Levels
At 0.7233, the immediate resistance is seen at 0.7237 (50% of 0.7493-0.6981), above which the gains could be extended to 0.7278 (38.2% of 0.6931-0.7493). On the other hand, a break below 0.7212 (50% of 0.6931-0.7493) would expose 50-DMA at 0.7191.