EUR/GBP & UK Construction PMI: New historical lows across the board?
Headlines from UK PM Theresa May during the weekend added pressure on the Sterling and Monday's session helped to push the pair to test post-Brexit lows, as the UK PM spoke about timing on when the Brexit process will start in the country. Today at 08:30 GMT will be published the Construction PMI in the United Kingdom and analysts are waiting for a slight decline from 49.2 to 49.0 in the September's reading.
Our technical analysis for EUR/GBP at H4 chart is very bullish, added to the fact that EUR is strengthening across the board and now it's testing the resistance level of 0.8740, thanks, of course, to the Sterling's weakness. If the pair manages to break the resistance level of 0.8740 (a weaker than expected number), we can see a rally towards the 0.8812 level. However, if EUR/GBP does a pullback at the current stage, then it could test the 0.8661 level, which is close to the 50 SMA.