- EUR/GBP remains confined in a range despite stronger Eurozone PMI prints.
- A modest bounce in the pound negated positive factor and capped gains.
- The fundamental backdrop support prospects for some near-term recovery.
The EUR/GBP cross extended its sideways consolidative price action – below the 0.8400 mark – and moved little post-Eurozone PMI prints.
Following the previous session’s intraday pullback from over one-week tops, the cross was seen oscillating in a narrow trading band through the early European session on Friday. The shared currency found some support from slightly better=than-expected German Manufacturing PMI, which largely negated a slight disappointment from Services PMI.
The intraday bid tone remained unabated, rather got an additional boost after the broader Eurozone PMI prints also came in stronger than consensus estimates. The positive factor, however, was largely offset by some recovery witnessed around the British pound and eventually led to a subdued/range-bound price action on the last trading day of the week.
Meanwhile, persistent market fears that Britain might crash out of the European Union at the end of the transition period later this year might keep a lid on any runaway rally for the British pound and might assist the cross to built on this week’s recovery move from two-month lows.
Technical levels to watch
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