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Forex pairs in this Article » GBP/USD, EUR/GBP (London) - EUR/GBP had reached a high in London 0.8593, but sunk like a stone back to 0.8551 on UK data. Now the pair are reacting to EZ numbers.

EUR/GBP has been a volatile player this morning. UK data surprised to the upside which resulted in the pair dropping over 40 pips. PMI came in as 52.5 beating expectations of 51.5. Mortgage Approvals for May 58.242k vrs expectations of 55.05k. Net Lending to Individuals was lower at £1b vrs £1.4b consensus. Meanwhile, EZ data has printed in line. EZ CPI core reads as 1.2% matching previous, and CPI came in line with expectations as 1.6%. The unemployment rate is slightly better than the consensus, readins12.1% vrs 12.3% respectively.

EUR/GBP Technicals Bearish

Saeed Amen, strategist at Nomura, said the technical for the week are bearish and ranging. “RSI has risen, suggesting upward momentum.” With bandwidth remaining so low, he expects range-bound trading rather than a large breakout. Hence, his target is close at 0.8600. He would expect a short-term top around that level and a move lower from there.
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