EUR/GBP remains vulnerable, bullish attempts limited below 0.8590

• Euro recovery attempts fail below 0.8600.
• The Eurozone services PMI was revised upwards, although at contraction levels.
• The overall trend remains bearish, with support at 0.8550 in play.

The Euro remains depressed near three-month lows against the British Pound. The pair’s slight attempt at a recovery during the early stages of the European session on Tuesday has found resistance at 0.8590 before giving way to the 0.8950 area.

UK services activity rises above expectations

Eurozone November services PMI data has been revised upwards as all major countries recorded better than expected levels. However, activity in the sector has contracted for the fourth consecutive month, which is not good news for the Euro.

In contrast, British services sector activity expanded in November and has been revised to 50.9 from the previously estimated 50.5, up from 49.5 in October, which has provided some support to the Pound.

The technical outlook shows a bearish euro with no clear signs of a trend change in sight. The next support is at 0.8550 and below at 0.7500 and 0.8455.

To the upside, 0.8590 and 0.8620 are the nearest resistance levels.

Technical levels to monitor