- EUR/GBP has bounced off major trendline support at 0.7570 and is attempting to reclaim the 0.77 handle.
- Pair has hit highs of 0.7703 and is currently trading at 0.7691, eyes 100-DMA at 0.7792.
- UK manufacturing PMI is due later today and markets expect uptick higher to 49.9 from a sharp drop seen in April to 49.2 points.
- Any miss on the data could weigh heavily on the pound raising the risk for downside in EUR/GBP. Break below 0.7570 could see sharp fall to 0.7425 levels.
- Technicals support upside in the pair, weakness only below 0.7570.
- Pair now finds immediate support and resistance at 0.7656 (10-DMA) and 0.7716 (Feb 5th highs).
Recommendation: Go long on break above 0.77, SL: 0.7655, TP: 0.7750/0.7790
