EUR/GBP is currently at the edge of breaking above the corrective structure resistance of 0.8850. After the UK Parliament Election, recently GBP has lost grounds against EUR and due to Brexit situation GBP is expected to get much weaker in the coming days. Today GBP CBI Industrial Order Expectation report was published with an increased figure at 16 which was expected to decrease to 7 from previous value of 9. As it is one of the leading indicators of economic health it has a high impact on the market as it signals future economic activity such as spending, hiring, and investment in the country. On the EUR side today we have Consumer Confidence report which is expected to be unchanged at -3, as it is one of the leading indicators of consumer spending thus overall economic activity, this event is expected to bring in a good amount of volatility in the pair today. Today ECB Economic Bulletin was also held which did not provide any high impact update on upcoming interest rates decisions and future economic conditions for which no such impact in the pair was observed today. To sum up, the corrective structure seems to continue further until the currencies in this pair show a positive economic outcome to dominate each other and set up a trend in the coming days.
Now let us look at the technical view, the price is currently being carried upward by 20 EMA which signals most probable break above the resistance of 0.8850. Currently, the price is in bullish bias due to the non-volatile bullish structure in this pair observed recently. A daily close above 0.8850 will signal a further bullish move in this pair with a target towards 0.9050 resistance area. If the price rejects of the 0.8850 resistance level in the coming days we may look for shorter-term bearish move with a target towards 0.8740-50 support area. The bullish bias will continue until the price breaks below the 20 EMA with a daily close.
