Sorry, you need to enable JavaScript to visit this website.

EUR/GBP Signal - UK services PMI - 05 April 2017

Signal details
Entry Price: 
0.8587
Close Price: 
0.8545
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
5/5 of 4 ratings

The UK services PMI will be due for release today for the month of March. The data, release by IHS Markit is expected to show a modest increase to 53.5, slightly higher from February's 53.3. The services PMI in the UK touched a high of 56.2 in December 2016 following which activity in the services sector has been slowly weakening.

Data released earlier this week included Markit's manufacturing and construction PMI. Both these PMI's came out without any major surprises although manufacturing PMI had been weak, rising to just 54.2 from 54.5 a month ago. Activity across the three sectors is expected to face some strong headwinds after the UK awaits a response from the EU after the Article 50 of the Lisbon treaty was triggered on March 29.

EURGBP slipped to a one-month low end of March but prices are seen posting a recovery since the start of the month. EURGBP has been bullish for two consecutive days and we expect to see this bullion continuation push the currency pair higher towards 0.8861 at the very least.

Economic data from the eurozone is light today; therefore most of the volatility in EURGBP will come from the UK services PMI data alone. The euro, for its part will be focusing on the economic data from the U.S. which will see the release of the ADP/Moody's private payrolls data alongside the FOMC meeting minutes which will be released today. Both these events combined will likely bring about some volatility in the single currency.

For today's binary options trading signal, we recommend CALL options at or above 0.8587 for a 20:00 GMT expiry time. We expect further bullish continuation in EURGBP towards 0.8629 after the resistance level at 0.8587 is cleared. This will put EURGBP on the bullish offensive towards the next resistance level seen at 0.8629.

Failure to clear the initial resistance could however push EURGBP back lower. However, this will depend on the outcome of the services PMI today.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.