FX.co ★ Blackpink | EUR/GBP

The Euro (EUR) records a major gain against the British Pound (GBP) on Monday, driven by a turnaround in oil pricesoil prices and better-than-expected Eurozone manufacturing PMI readings. The EUR/GBP currency pair is up nearly 0.3% on the daily chart and is testing resistance around the October 27 and 28 lows, near 0.8360. The final Eurozone HCOB manufacturing Purchasing Managers' Index (PMI) reading has been adjusted upward to 52.7 from the preliminary 52.4 reading, bringing the index in line with September's 52.9 reading. The German final PMI reading confirms estimates of 52.7, while French and Spanish PMI readings have been revised upward, whereas Italy's activity has contracted unexpectedly. According to the S&P Manufacturing PMI in the UK, the last month saw the strongest growth in the manufacturing industry, as activity rose to 52.8, the highest value in months, compared with September. However, it is not enough to boost the Pound, even though it supports expectations of a quarter-point increase in the Bank of England's Bank Rate. EUR/GBP is trading at 0.8356, with a near-term balance as bulls' efforts are hampered by their inability to move past a former support level. The 4-hour Relative Strength Indicator (14) near 50 indicates balanced momentum, having recovered from its oversold condition as the Moving Average Convergence Divergence (MACD) moves marginally higher above the zero line. A move above the above-mentioned 0.8360 would allow bulls to recover further. In that case, resistance could come near the 0.8380 high made on October 28, while 0.8400, the October 26 high, could confirm a turnaround. Failure to extend beyond 0.8360 would revive the bears for another attempt to test the 0.8320 low made on Friday on the way down to the late-February 2025 highs at 0.8300, as well as the critical support between the 0.8220 and 0.8240 lows of December 2024 and February 2025.