EUR/GBP bulls looking at the 0.8900 figure on weak GBP

• Customs’ Brexit-related issues further weigh on the British pound. 
• The UK Services PMI is another disappointing macroeconomic data for GBP which sees odds of a rate hike in May shrink greatly.

The EUR/GBP is trading at around 0.8832 up 0.34% in Thursday’s trading. 

The weak sentiment toward the British Pound persists as the prospects of a Bank of England rate hike in May become very slim. 

Earlier in the European session the UK Services PMI (Purchasing Managers Index) advanced to 52.8 in April from the significant slowdown seen in March. But the data came below expectations as analysts were expecting 53.5 for the month of April. 

Additionally putting pressure on the already weak GBP are the recent political issues that Theresa May’s UK prime minister is facing. Her customs’ plan for after Brexit has been rejected by his own ministers. She was outnumbered in her inner cabinet and she has less than a week to get a compromise or make a choice of staying in the EU’s customs union or just leaving without any deal. 

On the other hand, the Eurozone preliminary inflation data came worst-than-expected. The core Consumer Price Index for April fell to 0.7% versus the 0.9% expected by analysts while the non-core CPI came also  below estimates at 1.2% against the 1.3% forecast by analysts.

EUR/GBP 4-hour chart 

The trend is bullish and resistances are priced in at the 0.8840 supply level and at the 0.8900 figure while supports are seen at the 0.8782 and 0.8682 swing lows