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Maybe this time the EUR/GBP will take a proper dive?

There can be no denying and no escaping the fact; that the latest UK PMI data is very encouraging and perhaps for once just enough to stop the media and so called financial experts talking the country down, as indeed they have been, for simply too long now. That said, I do not wish to get too carried away with the data. Of course it was good, but was it good enough? Well, we shall see on that, but in any event it has helped to underpin the rally in the pound and the economy needs that, if the inflation battle is to be won. So, the GBP/USD is higher, but what about the EUR/GBP? Well, of course it did drop on this PMI data. The low seen so far has been set at 0.8688. The EUR/GBP closed in the US last night at 0.8714. The fall today has taken it closer to the current 200 day moving average, now in place at 0.8682. The current chart configuration is suggests this pair can extend to the downside, but it has to take out that 200 day moving average in a convincing way and that is still guarding the downside, as indeed it has all week so far. The EUR/GBP is just now trading at 0.8696
 

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