FxWirePro: EUR/GBP edges higher after gap up open, focus on UK manufacturing PMI data

• EUR/GBP retakes 0.85 handle after hitting lows of 0.8481 on Friday.
   
• Focus on UK manufacturing data due later today along with the final German and Eurozone manufacturing PMI data.
   
• The leading indicator - UK CBI data had showed a sharp rise in the export orders and price pressures which raises scope for better-than-expected UK manufacturing data.
   
• Technical studies support bearish bias. Upside in the pair remains capped below daily cloud.
   
• The pair has broken below 100-DMA and price action on weekly charts has dipped into weekly cloud.
   
• Break above daily cloud finds next major resistance at 100-DMA (0.8555). We see bearish invalidation on break above.

Support levels - 0.8455 (trendline), 0.8403 (Feb 22 low), 0.8331 (Dec 15 low)

Resistance levels - 0.8517 (cloud base), 0.8555 (100-DMA), 0.8579 (5-DMA)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: We hold by our previous call (http://www.econotimes.com/FxWirePro-EURGBP-holds-100-DMA-support-break-below-will-see-test-of-8460-619844).

Recommendation: Stay short, bearish invalidation on close above 100-DMA.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -119.563(Bearish), while Hourly GBP Spot Index was at 163.173 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.