EUR/GBP turns positive post-UK PMI, back closer to Friday’s near 2-week tops

   “¢   Brexit uncertainties continue to dent sentiment surrounding the British Pound.
   “¢   UK construction PMI falls to 10-month low and further adds to the GBP selling.
   “¢   Bullish traders seemed unaffected by a slump in Euro-zone investor confidence.

The EUR/GBP cross quickly reversed an early European session dip to 0.8740 area and has now moved within striking distance of near two-week tops set on Friday.

The British Pound remained depressed amid the stalemate situation over the Irish backstop, which coupled with today’s disappointing UK construction PMI further assisted the cross to regain positive traction.

The final UK PMI came in at a 10-month low level of 50.6 in January, down from 52.8 recorded in December and turned out to be one of the key factors behind the pair’s latest leg of an uptick over the past hour or so.

Meanwhile, bullish traders seemed rather unaffected by a plunge in the Euro-zone Sentix Investor Confidence index, coming in at -3.7 for February, down sharply from the previous month’s reading of -1.5 and -0.6 expected.

With today’s scheduled UK macro data out of the way, Brexit uncertainties-led weaker sentiment surrounding the Sterling might act as an exclusive driver and continue to boost the cross through Monday’s trading session.

Technical levels to watch