EUR/GBP Setup for Euro Zone PMI Releases (July 24, 2013)

Two of the largest economies in the euro zone, namely Germany and France, will be printing their manufacturing and services PMIs in today’s UK session. Small improvements are expected, although most of the figures are likely to stay below the 50.0 level indicating industry expansion.

Strong data could allow the euro to go for more gains and possibly end the day stronger against the pound. As seen on the 4-hour time frame, the pair is finding support at the former resistance level around .8600.



Stochastic has moved out of the oversold region and is still pointing upwards, suggesting that further rallies could be in sight. If that’s the case, EUR/GBP could climb back up to its recent highs around .8700.

A stop below the 61.8% Fib or .8570 might be a safe enough line in the sand if you plan to go long.

By Kate Curtis from Trader’s Way