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Forex pairs in this Article » EUR/GBP (Athens) – The EUR/GBP was trading at 0.8439 area prior to the UK Markit PMI Services Index release, but after the upbeat data the cross was abruptly dragged down nearly 0.8400 zone.

EUR/GBP struggles to remain over 0.8400 on best UK Markit since 1997

The EUR/GBP was under pressure the last couple of hours ahead of the UK Markit PMI Services Index data release - and precisely - it had touched a 2-week low as of 0.8439. As soon as the UK data released, showed that UK witnessed the sharpest rise in work activity for the past 16 years on October, the pound got a solid boost, thus, the EUR/GBP was dragged sharply downwards, slighty over the 0.8400 handle. What’s more, it is noteworthy to mention that according to Markit data, the cost inflation was highly accelerated on back of higher wages and bills.

Technical Perspective on the EUR/GBP

At the time of writing the EUR/GBP is trading at 0.8410 (-0.62%). Market investors should bear in mind that it could be plausible enough, that some traders could take a portion of their profits on their short positions near the 0.8400 handle, as the pair has witnessed a sharp pullback during the past week (over 180 pips since 0.8584 as of 29th October high). Karen Jones Head Technical Analyst of Commerzbank says that “….Last week the market saw quite a reversal from the 0.8585 peak and plunged lower. Last weeks move looked directional and wewould allow for further losses near term…We would allow for losses to 0.8459 then 0.8388, the 61.8% and 78.6% retracements of the move up from the October low..”
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