EUR/GBP has been in a volatile bearish trend recently. GBP has been quite stronger than EUR in the recent months and a further gain in GBP is expected in the coming days. Today was a positive day for EUR which received a boost from a series of upbeat reports. Spanish Unemployment Change was positive at -129.3k which was expected to be at -78.2k. Spanish Services PMI was quite as expected at 57.8 which was expected to be at 57.7. The revised eurozone's Services PMI came in at 56.4, a bit higher than the expected 56.3. On the other hand, GBP also had a positive economic report of Services PMI at 55.8 which was expected to be at 54.6 and Net Lending to Individuals was also positive at 4.7B, stronger than the expected 4.5B. Both currencies are fighting to set a trend in this pair and a daily close today will signal a further dynamic in this pair.
Now let us look at the technical chart. The price is currently below the dynamic resistance of 20 EMA and it is expected to show some bearish move today. We will not consider selling this pair until the price breaks below 0.8420 with a daily close and we will determine 0.8290 as a lower target. On the other hand, we will consider buy positions if the price breaks above 0.8550 with a daily close and will determine 0.8750 as our upward target. Because of the lower highs already created in this pair, we are in a bearish bias until the price breaks above 0.8550 with a daily close, till then we will be planning to sell this pair.
