EUR/GBP has finally broken above the resistance level of 0.8850 and expected to have further bullish move in the coming days. Due to Brexit tension and resignation of PM May are currently having the negative effect on the GBP and weakening further against EUR recently. Today EUR German WPI report showed a rise to 0.0% from previous value of -0.7% which did not meet the expected value of 0.2% and Industrial Production report is yet to be published which is expected to rise to 1.0% from previous value of 0.5%. On the GBP side, today Average Earning Index is going to be published which is expected to decrease to 1.8% from previous value of 2.1%, Claimant Count Change is expected to increase to 10.5k from previous value of 7.3k and Unemployment Rate is expected to be unchanged at 4.6% today. A good amount of high impact reports is going to be published on the GBP side today which is expected to bring in a good amount of volatility today. Though EUR is having an upper hand over GBP currently but a positive report today may lead to a good amount of gain on the GBP side against the EUR by the daily close today.
Now let us look at the technical view, the price has already broken above the 0.8850 resistance level yesterday and currently heading towards the next resistance at 0.9050. Some retracement is expected to occur along the way to 0.9050 as the price has moved quite higher above the Mean Reversion dynamic level of 20 EMA which may lead to certain bearish interventions. As the price remains above the 0.8850 the bullish bias is expected to continue further in this pair.
