EUR/GBP has been quite volatile in the price range of 0.87 to 0.8850 for a few days now. The pair has come under bearish pressure. The positive economic reports from the UK propelled GBP gains over EUR, whereas EUR has been struggling amid mixed results.
Today, eurozone's Retail PMI report is due today which previously was at 48.6 and expected to have a certain increase in PMI today. Ahead of the G7 meetings this week, certain economic reports are going to make a neutral impact on the EUR gains for the coming days.
On the other hand, today on the GBP side MPC Member Tenreyro and McCaffertey are going to speak about the interest rate and upcoming monetary policy decisions. Their remarks are likely to be quite hawkish leading to more gains on the GBP side in the short term.
As for the current scenario, GBP is expected to gain much more momentum over EUR in light of the recent economic reports and events, whereas GBP is quite strong ahead of upcoming economic developments. Though the pair is still quite volatile, trading in the range, if the UK continues to provide positive economic reports in the coming days, GBP will find solid support.
Now let us look at the technical view. The price has been quite bearish with the gains yesterday which nearly engulfed the previous bullish price action with ease leading the price to reside below 0.8750 in the process. The dynamic level of 20 EMA has been violated lots of times so far, whereas the current slope is quite bearish. Though the price is residing currently in a support area of 0.8700-50 area, the pressure is bearish and break below 0.87 will lead to further bearish pressure in the coming days with a target towards 0.8550 area. As the price remains below 0.8750 with a daily close, the bearish pressure is expected to continue.
