EUR/GBP has been quite bullish recently after bouncing off the 0.8750 support area. The pair is expected to surge up higher in the coming days. EUR has been in a better position than GBP in light of economic reports from the eurozone along with favorable market sentiment. The recent rate hike by the Bnak of England did not quite help the currency to gain momentum. Today, French Final CPI report was published unchanged as expected at 0.1% and Trade Balance report was published with a higher figure of 25.0B from the previous figure of 21.0B which was expected to have a slight increase to 21.2B. On the GBP side, today the Average Cash Earning Index was published with a better than expected value at 2.2%, down from the previous value of 2.3%, the Claimant Count report which is the Unemployment Claims report of the UK, showed a better result at 1.1k decreasing from the 2.6k which was expected to be at 2.0k, and the Unemployment Rate report was published unchanged as expected at 4.3%. Additionally, MPC member Broadbent speech is expected to be quite neutral for the upcoming interest rate decisions and future monetary policy. As of the current scenario, EUR and GBP are currently residing in an unclear structure of the market where any currency with better economic reports and results will lead the way in the coming days. As of the current scenario, GBP still did not quite amaze us with gains after the rate hike and several recent positive economic reports which are expected to be absorbing sufficient power to put pressure on EUR in the coming days. Though the current situation of the pair is indecisive, GBP is expected to have an upper hand over EUR pushing the price lower in the coming days.
Now let us look at the technical chart. The price is currently residing at the edge of the resistance area of 0.90 which is expected to push the price lower with a target towards 0.8750 in the coming days. The resistance area of 0.90 has been quite strong earlier that led to several bearish momentum. If the price rejects off the level with a daily close today, then we will be looking forward for strong selling pressure in the nearest days. As the price remains below 0.90 resistance area, the bearish bias is expected to continue further.
