May. 7, 2021
The EUR/GBP is recovering back to its previous close at 0.8685 after dipping down to 0.8665. (Start trading Euro/Pound at FXTM today).
This move comes while some more positive signs for Euro/Pound are out as data for United Kingdom Services PMI released yesterday at 8:30 AM came out at 61, beating projections of 60.1 and showing improvement over the preceding figure of 56.3.
Nevertheless, United Kingdom Construction PMI published today at 8:30 AM came out at 61.6, falling short of the 62.3 projections and continuing its decline from the previous 61.7 figure.
More data out yesterday as the United Kingdom BoE Interest Rate Decision (May) matches projections with new data release of 0.1. The indicator value is unchanged and is the same as previous data of 0.1.
As the day reaches an end, a chart visual study suggests Euro/Pound could be slowing down soon as it is approaching and is only 14 pips away from resistance at 0.8713, of course, crossing it might suggest further gains are ahead. In terms of trend indicators, we can see that although up today, it's worth noting that earlier the Euro/Pound dropped below the 21 day Simple Moving Average as it was trading at 0.8666, usually an indication that a negative trend is ahead. Asset volatility analysis shows that the upper Bollinger band is at 0.873, This is a slight indication of a slowdown.
Overall, looking at the technical analysis landscape, it seems the Euro/Pound is likely to reverse course and start pointing down in the short term.
While the Euro/Pound is green so far today, these assets are not doing so well- Singapore Dollar made its largest single-day drop (0.61%) since May 2020. At 1.4649, EUR/CAD is down to its lowest value in 1 year.
Euro/Pound social media highlights:
