- The Euro after trading lower towards 0.8400 against the British Pound found support and recovered.
- The EURGBP pair climbed higher recently and broke a rising channel at 0.8470 on the hourly chart.
- The German Manufacturing Purchasing Managers Index (PMI) for April 2017 released by the Markit economics remained at 58.2 as expected.
EURGBP Technical Analysis
The Euro was under pressure after trading 0.8500 against the British Pound. The EURGBP pair moved down this past week and broke the 0.8480 support area for a move towards 0.8400.
The pair traded as low as 0.8403 where it found support and later started moving higher. The upside move strong, as the pair broke the 50% Fib retracement level of the last decline from the 0.8461 high to 0.8403 low.
Later, the pair even broke the last swing high and resistance at 0.8460 for further gains.
EURGBP Hourly Chart
The best part was a break above the highlighted rising channel at 0.8470 on the hourly chart.
At the moment, the pair is trading above the 1.236 extension of the last decline from the 0.8461 high to 0.8403 low.
It may dip a few pips to retest the 0.8460-50 support area, but later it may bounce back and attempt a move towards the all-important 0.8500 handle.
German Manufacturing PMI
Today in the Euro Zone, the German Manufacturing Purchasing Managers Index (PMI) for April 2017 was released by the Markit economics. The market was expecting no change in the PMI from the last reading of 58.2 in April 2017.
The actual result was in line with the forecast, as the German Manufacturing Purchasing Managers Index was 58.2 in April 2017, which is a positive reading and well in the expansion zone.
Commenting on the report, a Senior Economist at IHS Markit, Trevor Balchin, stated:
The final PMI data for April confirm that German manufacturing remained in a high gear at the start of the second quarter, with the headline figure little-changed from March’s 71-month peak. Although growth of output, new orders and employment all eased, this was mostly offset by more evidence of supply chain pressures as input delivery times lengthened to the greatest extent in six years.
Overall, the Euro may gain, and EURGBP could move back towards the next important resistance at 0.8495 in the near term.