- The euro soared to a 4-1/2 month peak against the British pound on concerns about Britain’s negotiations with the European Union over a trade deal and whether a UK budget next month will include much more spending
- Moreover, data showing the IHS Markit/CIPS UK Manufacturing PMI was revised slightly down to 51.7 in February from a preliminary of 51.9 further dented the bid tone around the British pound.
- EUR/GBP is trading 0.9 percent up at 0.8676, having hit a high 0.8686 earlier, its highest since October 17.
- Momentum indicators are bullish: RSI strong at 71, MACD supports upside and Stochs are at oversold levels.
- Immediate resistance is located at 0.8703, a break above could take it near 0.8715.
- On the downside, support is seen at 0.8578, a break below could drag it till 0.8556.
Recommendation: Good to buy on dips around 0.8605 with stop loss of 0.8578 and target price of 0.8703.
