Today has been quite a volatile day for EUR/GBP after having certain retracement recently. EUR has been quite mixed with the economic reports today which somehow did help the currency to gain over recent GBP dominance but still, there are certain cautions to be considered about the upcoming bullish move in this pair. Today EUR Minimum Bid Rate report was published with an unchanged value as expected at 0.00% and following this at the ECB Press Conference Draghi has been quite positive with the Euro growth which has helped the currency to gain more strength over GBP today. Alongside these economic reports, today EUR German Industrial Production report was published with worse than expected value at 0.0% from the previous value of -1.1% which was expected to be at 0.5%, French Trade Balance showed greater deficit at -6.0B from the previous figure of -4.9B which was expected to show less deficit at -4.5B and Revised EUR GDP report was unchanged as expected at 0.6%. Despite such negative reports of EUR alongside the Minimum Bid Rate and ECB Press Conference the currency strength is quite intact and expected to continue dominating GBP further in the coming days. On the other hand, today GBP Halifax HPI report was published with an increase to 1.1% from the previous value of 0.7% which was expected to decrease to 0.2% and having such positive economic report GBP could not stand a positive chance against EUR due to presence of strong EUR sentiment in the market as of recent hawkish ECB statements and economic reports. To sum up, EUR has been better with the high impact economic reports and events over GBP which is expected to continue further taking the price much higher in the coming days.
Now let us look at the technical view, the price has today bounced off the dynamic level of 20 EMA after recent bearish pressure off the resistance level 0.9270. Currently, the price is quite bullish in nature which is expected to push the price much higher towards 0.9270 in the coming days and if the price breaks above the 0.9270 resistance level with a daily close then it is expected that the price will move much higher with a target towards 0.9500 resistance area. As the price remains above the dynamic level of 20 EMA with a daily close the bullish bias is expected to continue further.
