FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP was trading 0.38% higher on the day at 0.8526 at around 08:00 GMT, remains unfazed by downbeat Eurozone PMIs.

The pair has held support at 200-DMA and is currently extending gains for the 2nd straight session.

Data released earlier on Tuesday showed Eurozone Manufacturing PMI printed at 54.4 in May vs. 54.9 expected. While, services PMI fell to 56.3 in May vs. 57.5 expected.

On the other side, German Preliminary Manufacturing PMI unexpectedly rose in May, provides a strong tailwind for the pair.

The preliminary manufacturing activity report from S&P Global/BME research showed on Tuesday Germany Manufacturing PMI came in at 54.7 this month vs. 54.0 expected and 54.6 prior. 

Meanwhile, Services PMI dropped from 57.6 booked previously to 56.3 in May as against the 57.2 estimated, its lowest level in two months.

Germany Composite Output Index arrived at 54.6 in May vs. 54.0 expected and April’s 54.3.

Support levels - 0.8485 (5-DMA), 0.8441 (200-DMA)

Resistance levels - 0.8534 (Upper W BB), 0.8585 (110-week EMA)

Summary: EUR/GBP bounce off 200-DMA has capped further weakness in the pair. Scope for test of 110-week EMA at 0.8585.