EUR/GBP sits at session tops, unmoved post-stronger UK PMI

   “¢   UK construction PMI adds to Friday’s stronger manufacturing PMI print.  
   “¢   Bulls seemed unaffected by today’s downbeat EZ Sentix index.  

The EUR/GBP cross caught some fresh bids on Monday and recovered a part of previous session’s steep decline from near three-week tops.  

A combination of supportive factors – upbeat UK manufacturing PMI and news of a possible solution over the Northern Ireland border issue, lifted the British Pound across the board on Friday.  

The cross witnessed an intraday retracement of over 80-pips from levels beyond the 0.8800 handle and finally ended on the back foot, marking the third week of declines in the previous four.

The bearish pressure abated at the start of a new trading week and was now being supported by a goodish pickup in demand for the shared currency amid subsiding worries over the political situation in Italy.  

The up-move, seemed unaffected by the disappointing release of EZ Sentix Investor Confidence, with traders also shrugging off a stronger-than-expected UK construction PMI print for May.  

With today’s economic data out of the way, external BOE MPC member Silvana Tenreyro’s scheduled speech, due later during the New-York trading session, would now be looked upon for some fresh impetus.

Technical levels to watch

Immediate resistance is pegged near 0.8780 horizontal level and is followed by the 0.8800-0.8810 strong hurdle, which if cleared should lift the cross further towards 0.8840 supply zone.

On the flip side, weakness back below 0.8730 level might now turn the cross vulnerable to extend the downslide and head towards testing sub-0.8700 level (0.8685 support area).