EUR/GBP has been residing inside the correction range 0.87 to 0.8850 area for a few weeks now, where the price showed impulsive bearish pressure yesterday following the recently published EUR economic reports and events.
Recently EUR Main Refinancing Rate report was published with an unchanged value as expected at 0.00% but ECB failed to impress the market participants with its upcoming plans to for the economic growth. EUR economy has been quite unimpressive recently leading EUR to lose certain grounds in the market. Today EUR Final CPI report was published with an unchanged value as expected at 1.9%, Final Core CPI report was also published unchanged as expected at 1.1% and Trade Balance report was published with a decrease to 18.1B from the previous figure of 19.8B which was expected to increase to 20.2B.
On the other hand, GBP gained momentum having better than expected Retail Sales report yesterday. Retail Sales report was published at 1.3% decrease from the previous value of 1.8% which was expected to decrease to 0.5%. The better than expected result helped GBP to gain momentum when EUR was struggling to make an impact. As a result, GBP gained quite impulsively against EUR in the process which is expected to continue further in the coming days leading to more gains on the GBP side in the future.
Now let us look at the technical view. The price has rejected the bulls with greater extent today after the recent impulsive bearish pressure breaking below 0.8750 area with a daily close. Though the price is currently residing inside the support area of 0.8700-50 the bears are expected to push the price much lower towards 0.85 in the coming days. As the price remains below 0.8850 area with a daily close, the bearish bias is expected to continue further.
