EUR/GBP challenges lows post-PMI

The sterling has gathered further traction today following the release of the PMI in the UK economy, sending EUR/GBP lower to the 0.7720 region.

EUR/GBP surrenders gains

The European cross faded the initial spike to the 0.7740/45 band although remains within a tight range after UK’s Services PMI has come in on the strong side, surpassing expectations at 53.5 for the month of May vs. 52.3 from previous month and 52.5 forecasted.

Further data saw EMU’s Services PMI also up at 53.5 vs. April’s 53.1, while Retail Sales in the bloc have come in flat on a monthly basis and up 1.4% on a year to April.

EUR/GBP key levels

The cross is now losing 0.09% at 0.7725 facing the next support at 0.7562 (low May 25) ahead of 0.7536 (200-day sma) and finally 0.7310 (low Jan.5). On the other hand, a breakout of 0.7799 (100-day sma) would expose 0.7850 (55-day sma) and then 0.7947 (2016 high May 4).