EURGBP has finally broken out of the corrective structure this week with a break above the resistance 0.8640-50 area. Currently the price is residing just above the resistance and expected to retrace back toward the resistance as support. Today EUR having positive German Industrial Production report at 2.8% which previously was at 2.4% and negative French Trade Balance at -7.9B which was forecasted to be at -3.7B, EUR managed to gain strength over GBP. GBP Annual Budget was published today which did show some negative bias in the market for which GBP has been seen falling along in contrast with all pairs. It is expected that EUR is going to gain more strength in the near future against the GBP.
Now let us look at the technical view, price is residing just above the resistance of 0.8640-50 area. With a small break above the resistance it is expected to have a retest quicker and after the retest if we witness any bearish rejection with a daily close from the level we will be looking forward to buy with a target toward 0.8850.
