FXStreet (Mumbai) – The shared currency erased most losses versus the pound in the European morning trades, with EUR/GBP heading towards session highs. The cross recovered losses and trades muted as shared currency was boosted after the German and Eurozone Services PMI showed a healthy recovery in the services sector activity.
EUR/GBP rises from 0.7250
Currently, the EUR/GBP cross trades modestly flat at 0.7264, retreating from 0.7253 session lows. The cross in EUR/GBP wiped out losses as the improvement seen in the services sector activity both in Germany and in the 19-nation bloc as a whole lifted the shared currency from session lows versus the pound.
The German services PM rose to 53 in May, slightly outpacing the preliminary one, which came in at 52.9 points. While, the region’s services PMI remained in expansion mode, although the final reading came in at 53.8 points in May, weaker than 54.1 a month ago. The preliminary survey hinted at a 53.3 result.
However, the upside in the cross was restricted as the pound remained well bid versus the US dollar ahead of the UK’s services PMI report due out shortly.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7338 (April 30 High) levels. To the downside immediate support might be located at 0.7200 levels below that at 0.7177 (June 2 Low) levels.
(Market News Provided by FXstreet)