the bulls take the torch and release the 200 hours of SMA

• The EUR / GBP is back on offer, with a bottom at 0.8836 and a return above the 200-hour SMA.
• EUR / GBP is doing a good two-way business, as it continues to consolidate with a combination of political headings ranging from Brexit to the Italian budget and comments by ECB Governor Draghi on the US economy. world economy and the euro area.

The EUR / GBP pair was somewhat consolidated earlier this week, confined by recent levels of support and resistance after falling 0.8920 at the end of last week. The cross received a fundraiser Monday in the European markets after the good news of the Italian budget, and the pair rose from 0.8850 to 0.8868. However, the bears have lost their candidacy because of the deterioration of the economic situation of the euro area. Other data was missing from the forecast, and the pair fell to 0.8836. However, a North American offer has been launched to reach a current high of 0.8851.

EUR / GBP fundamentals at stake

Before the IPC EZ index Friday, a larger-than-expected decline in the German Ifo business climate index, standing at 102.00 for November, compared with the previous 102.8 and consensus estimates suggesting a reading of 102.3, put pressure on the euro. Going back, the German manufacturing PMI slowed to 51.6 in November, its lowest level in 32 months, while services fell to 53.3, their lowest level in six months. (The composite PMI fell to 52.2 in November, its lowest level in 47 months.) The manufacturing PMI of the euro area slowed to 51.5 in November, while services fell to 53.1, its level lowest in 25 months, bottom of 47 months of 52.4 in November).

Draghi also took the step, warning that growth in global trade growth has slowed "significantly" and noting that recent economic data has been weaker than expected. Meanwhile, on the political front, the Italian government has expressed interest in the government to discuss a target of reducing the budget deficit for 2019 below 2-2.1% of GDP, which is significantly lower than 2.4%. something much more acceptable and in line with the rules of the EU. Regarding the Brexitfront, Prime Minister May has obtained EU approval both on the political declaration and on the terms of a trade agreement at the exit of the EU. EU, but it will now face its biggest challenge: it must be approved by the UK Parliament.

EUR / GBP levels

Analysts at Commerzbank explained that the EUR / GBP pair weakened last week just in front of fierce resistance in the high of October at 0.8941 and said the market had sold to 55 days and 200 days at 0.8833 / 36:

"Even if it remains at more than 0.8800, the market will still be able to repeat the test, above 0.8941 the July peak will be 0.8960, followed by the highs. from the beginning of August and September to 0,9031 / 54. are currently almost halfway – we have no significant bias.Slides should find support between the July low of 0.8799 and the maximum on November 12 at 0.8774 The support is at the trough of October at 0.8723. "