The EURGBP cross reversed a dip to an intraday low level of 0.8863, with bulls now looking to build on the positive momentum back above the 0.8900 handle.
December 3, GKFX – A fresh wave of GBP selling interest emerged, despite today’s upbeat UK macroeconomic data, and was seen as one of the key factors behind the pair’s latest leg of a sudden pickup over the past few hours.
In fact, the final UK manufacturing PMI arrived at a two month high level of 53.1 in November but was largely negated by growing concerns that the UK PM Theresa May could face a no-confidence vote if parliament rejects the Brexit deal.
Meanwhile, the latest comments by the UK PM Theresa May, ruling out the possibility of a second Brexit referendum and saying that I will still have a job in two weeks time, did little to inspire and ease the prevailing bearish sentiment surrounding the Sterling.
The cross climbed back closer to November monthly highs resistance, around the 0.8920-30 region, albeit some fresh selling around the EUR/USD major now seemed to contribute towards keeping a lid on any runaway rally, at least for the time being.
EURGBP Technical outlook
On a sustained move beyond the mentioned barrier, the cross is likely to aim towards reclaiming the key 0.90 psychological mark before eventually darting towards the 0.9030-35 supply zone.
On the flip side, the 0.8880 region (100-day SMA) now seems to protect the immediate downside and is followed by the very important 200-day SMA support near the 0.8835 region.
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