- EUR/GBP trades in a narrow 30-pip range, holding above 0.8400 with a modest 0.02% uptick.
- Weak UK sentiment and China’s manufacturing PMI slump boost Euro demand.
- Technical indicators point to consolidation; key resistance stands at the 200-day SMA of 0.8422.
The EUR/GBP pair steadied during the North American session, trading within a tight 30-pip range as buyers regained control above the 0.8400 mark for a modest 0.02% gain.
Market sentiment remains subdued following weak January Manufacturing PMI data from China, reported by the National Bureau of Statistics (NBS), which has pressured the Pound while supporting the Euro.
Technical Outlook
EUR/GBP remains below the 200-day Simple Moving Average (SMA) at 0.8422, signaling bearish pressure. However, buyers have stepped in near the 0.8400 level, preventing further declines.
The Relative Strength Index (RSI) remains bullish but is flattening, suggesting a potential consolidation phase before the pair resumes its upward trend.
For a bullish continuation, EUR/GBP must clear the 200-day SMA at 0.8422. If successful, the next targets include the January 24 high at 0.8462 and the January 20 peak at 0.8473. Conversely, a break below the 0.8400 support would expose the January 14 low at 0.8383, followed by the 100-day SMA at 0.8347.
