EUR/GBP has been in a corrective volatile structure after a non-volatile bullish move towards 0.8850 resistance level and currently struggling at the edge of 0.8850. Recently EUR has been struggling with its mixed and unchanged economic reports which stopped the bullish momentum against GBP where GBP has been struggling to get over the Brexit and the economic uncertainty. Yesterday, the UK released a series of downbeat economic reports including CPI report which showed a worse value at 2.6% which was expected to be unchanged at 2.9%. On the EUR side, today German 30-y Bond Auction report was published at 1.29|1.8 which previously was at 1.02|2.0. The economic report enabled EUR to gain some momentum over GBP. Tomorrow is a big day for both EUR and GBP as a large number of high impact economic reports will be published. Tomorrow, EUR Minimum Bid Rate report will be published which is expected to be unchanged at 0.0%, along with ECB Press Conference. As of the recent hawkish comment of ECB President Draghi, the rate is expected to show some positive result tomorrow and help EUR to gain over GBP. On the other hand, GBP Retail Sales report is also going to be published tomorrow which is expected to show a positive result at 0.4% which previously was at -1.2%. To sum up, though EUR/GBP is struggling at 0.8850 level currently, higher volatility is expected to hit the market tomorrow amid a flood of macroeconomic statistics which will provide hints about upcoming directional movement in this pair. EUR is expected to have an upper hand over GBP in the coming days due to the market sentiment and hawkish behavior of ECB recently.
Now let us look at the technical chart. The price is currently struggling to break above the resistance level of 0.8850. The price has already rejected and had a false break recently above the level which does signal the strength of the bears in the current market situation. Though the price has been supported by 20 EMA along the way towards 0.8850 but recently a good amount of volatility is indicating the presence of bears in the market to take the price further down towards 0.8530 support level. As the price remains below 0.8850 with a daily close the bearish bias is expected to continue in this pair.
