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EUR/GBP turns flat around 0.8340 after UK PMI data Haresh Menghani

After swinging back into positive territory following the release of Euro-zone PMI readings, the EUR/GBP cross has now turned absolutely flat to currently trade around 0.8340-45 band. A minor retracement from session high level of 0.8371 has been led by stronger-than-expected UK manufacturing PMI print. According to the data release just a while ago, UK manufacturing PMI for June rose to 52.1, its highest level since Jan., surpassing consensus estimated reading of 50.Earlier, final Euro-zone manufacturing PMI also printed better-than initially estimated reading of 52.8 that assisted the EUR/GBP cross to recovery from initial drop to 0.8315. Going forward, given the prospects of further easing by BOE, as hinted by BOE Governor Mark Carney hinted towards additional easing measure during his press-conference on Thursday, the pair might continue to attract fresh buying interest on every dips. Technical levels to watchStrong bullish momentum above recent swing highs resistance near 0.8380 area is likely to boost the pair further beyond March 2014 highs resistance around 0.8400 handle, possibly towards testing Dec. 2013 peak resistance near 0.8460 area. Meanwhile on the downside, weakness below session low support near 0.8300 handle, and a subsequent break below 0.8280 horizontal support, seems to extend the corrective move back towards weekly lows support around 0.8200 handle. Below 0.8200 support, the downslide seems to drag the pair towards a previous strong resistance, now turned support near 0.8100 region.



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