EUR/GBP opened the session on Monday with quite a big GAP following the first round of the presidential election in France. Currently, the pair is residing just above the 200 EMA. EUR today is notably stronger than GBP because Macron has won the first round in France. Besides, Germany's Ifo Business Climate report revealed a better-than-expected index at 112.9 against the forecast of 112.4. On the other hand, GBP did not have positive economic reports today as GBP Rightmove HPI showed a decreased value of 1.1% which previously was at 1.3%. CBI Industrial Order Expectations also showed a decreased value of 4 instead of a 9 gain. Though the market was quite corrective today after the big GAP in the EUR pairs, GBP failed to keep up with EUR in fundamental prospects. The pair is expected to rise much higher on the EUR side.
Now let us consider the technical view. After the bounce off the support 0.8330 last week, today price started above 200 EMA. With positive EUR economic reports and negative GBP economic reports, EUR has been viewed as the dominating currency in the pair. If the price remains above the 200 EMA with a daily close, then we will expect a further bullish move towards 0.8760 resistance level. The bullish bias will continue in this pair until the price breaks below 0.8330 with a daily close.
