5 Aug 2015
EUR/GBP drops to 2-week lows near 0.6970
FXStreet (Mumbai) - The shared currency continues to get hammered by the pound in the European session, now sending EUR/GBP to fresh two-week lows below 0.70 – key barrier. The euro remains undermined as markets digest the latest mixed services PMIs released from the Euro zone while await the crucial UK services PMI report due out shortly.
EUR/GBP rejected at 1.6995
Currently, the EUR/GBP pair trades -0.31% lower at fresh bi-weekly lows of 0.6968, unable to regain 0.70 handle. The cross in EUR/GBP is extending lower as EUR bulls were offered no support from the mixed set of services PMI reports released from the Euro area economies.
The Euro zone bloc’s services PMI maintained healthy expansion, with the final reading booking 54.0 points in July, slightly above the preliminary survey hinted at a 53.8 result. German services sector continued to expand in July, with the PMI hitting 53.8 points after the June reading of 53.8.
Further, the losses in EUR/GBP were accentuated on the back of strengthening GBP/USD ahead of UK services PMI with markets expected a slowdown in the pace of expansion in July.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7000 levels and above which it could extend gains 0.7044 (Aug 3 High) levels. To the downside immediate support might be located at 0.6945 (July 21 Low) below that at 0.6935 (July 20 Low).
EUR/GBP rejected at 1.6995
Currently, the EUR/GBP pair trades -0.31% lower at fresh bi-weekly lows of 0.6968, unable to regain 0.70 handle. The cross in EUR/GBP is extending lower as EUR bulls were offered no support from the mixed set of services PMI reports released from the Euro area economies.
The Euro zone bloc’s services PMI maintained healthy expansion, with the final reading booking 54.0 points in July, slightly above the preliminary survey hinted at a 53.8 result. German services sector continued to expand in July, with the PMI hitting 53.8 points after the June reading of 53.8.
Further, the losses in EUR/GBP were accentuated on the back of strengthening GBP/USD ahead of UK services PMI with markets expected a slowdown in the pace of expansion in July.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7000 levels and above which it could extend gains 0.7044 (Aug 3 High) levels. To the downside immediate support might be located at 0.6945 (July 21 Low) below that at 0.6935 (July 20 Low).