The pound was trading elevated on Tuesday and the EURGBP cross was down 0.25% during the London session, hovering around 0.8845 and slightly above the 200 day moving average.
The UK manufacturing production for May ticked higher from 0.9% to 1.1% year-on-year, although analysts had expected 1.9%. The monthly change also missed estimates, but improved from -1.3% to 0.4%. Industrial production slowed by half to 0.8% from 1.6% (the yearly basis) and the month-on-month change accelerated somewhat from -1.0% to -0.4%.
Moreover, the deficit of trade balance narrowed marginally to 2.79 billion GBP, up from a deficit of 3.09 billion GBP previously.
Later in the day, the important German ZEW surveys are due and all three indicators are seen weakening, which could send the euro slightly lower.
The EURGBP cross stalled yesterday at the strong bearish trend line near 0.8880, where the key resistance is seen. If broken, the current downward trend could be broken, with the next target at March’s highs at 0.8950.
On the downside, the support is at 0.8835 and afterward at the 200 day moving average a couple of pips lower.
Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.