EUR/GBP trims gains after yet another upbeat UK PMI

The EUR/GBP cross failed to built on early up-move and trimmed some of its gains to currently trade around 0.8470 region after UK PMI print. 

Spot traded with mild positive bias for the second straight session but failed to gained additional traction after the latest reading on the UK services sector added to this week’s surprisingly stronger manufacturing and construction PMI prints. In fact, the UK services PMI unexpectedly jumped to 55.8 in April, up from previous month’s reading of 55.0 and far better than consensus estimates pointing to a fall to 54.5. 

Despite of this week’s upbeat PMI readings, the British Pound has failed to attract any fresh buying interest as investors seemed reluctant amid renewed worries over a possible ‘hard Brexit’ scenario. 

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Meanwhile, market seems to have largely ignored mixed readings from the final Euro-zone PMI prints, albeit remained supportive of a modest pick-up in demand for the shared currency. 

Technical levels to watch

A follow through buying interest has the potential to lift the cross beyond the key 0.85 psychological mark towards its next major hurdle near 0.8530 level. On the flip side, weakness below 0.8455-50 area is likely to accelerate the slide towards 0.8420-15 support before the pair eventually breaks through the 0.8400 handle and head towards testing its 0.8370-65 horizontal support.