EUR/GBP has been in a corrective mood after a good amount of bearish pressure last week. Today the market was quite indecisive about this pair. Today, a good number of economic events took place on both EUR and GBP side. On the EUR side, German WPI report was published with a decreased value at 0.0% which was expected to be at 0.4%. German 10y Bond Auction report was at a decreased rate of 0.21/1.4 which previously was at 0.41/1.5. On the other hand, GBP had Average Earning Index published today with a positive figure at 2.3% which was expected to be at 2.1% but Claimant Count Change showed negative result of 25.5k which was expected to be at -10.2k. But BOE Governor spoke about short-term interest rate and monetary policy which had a positive effect on GBP but could not dominate the EUR well enough.
Now let us look at the pair from the technical view. The price is currently being supported by the 200 EMA which has been providing support since June 2016. Currently the candle formation is quite indecisive and a daily close above or below the 200 EMA or 0.8470 will signal the upcoming change in this pair. If the price closes above the 200 EMA and shows some bullish pressure we will be looking forward to buy with a target towards 0.8760. Alternatively, if the price closes below the 200 EMA, then the price is expected to go down towards the recent support area of 0.8330-0.8420. It is very crucial moment for this pair right now as a break or bounce off the 200 EMA will signal the upcoming trend reversal.
