FxWirePro: EUR/GBP retakes 0.86 mark, pound under pressure after UK Final Manufacturing PMI misses estimates

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.35% higher on the day at 0.8600 at around 10:15 GMT.

The pair edged higher from session lows at 0.8563 after the British pound came under selling pressure on UK Final Manufacturing PMI miss.

Final report from IHS Markit confirmed on Thursday that the seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised down to 63.9 in June versus 64.2 expected and 64.2 first estimate.

Further, comments from  Bank of England Governor, Andrew Bailey, indicated that the UK central bank is in no hurry to tighten its monetary policy anytime soon, adding to pressure on the British pound.

Bailey during a scheduled speech on Thursday, said that "we are prepared to respond with the tools of monetary policy if there are signs of more persistent inflation pressure."

Support levels - 0.8583 (21-EMA), 0.85 (Psychological mark), 0.8475 (110-month EMA)

Resistance levels - 0.8606 (55-EMA), 0.8622 (Upper BB), 0.8661 (110-EMA)

Summary: EUR/GBP is testing 55-EMA resistance at 0.8606, decisive break above will take the pair higher. Scope for upside as technical indicators support gains. Next major bull target lies at 23.6% Fib at 0.8650.