EUR/GBP has been quite bearish with the recent price action which led the price towards 0.8850 area with a daily close. GBP has been propped up by the recent economic reports which enabled GBP to gain ground against EUR in the process.
Recently UK CPI report was published with an increase to 2.7% from the previous value of 2.5% which was expected to decrease to 2.4% and Retail Sales decreased to 0.3% from the previous value of 0.9% while performing better than expected value of -0.2%. Today UK Public Sector Net Borrowing report is going to be published which is expected to increase to 2.9% from the previous value of -2.9% and Bank of England's Quarterly Bulletin is also expected to have a hawkish impact on the current market scenario.
On the EUR side, today French Flash Manufacturing PMI report is going to be published with a slight decrease to 53.3 from the previous figure of 53.5, French Flash Services PMI is expected to decrease marginally to 55.2 from the previous figure of 55.4, German Flash Manufacturing PMI is expected to decrease to 55.7 from the previous figure of 55.9, and German Flash Services PMI is expected to increase to 55.1 from the previous figure of 55.0. Moreover, the eurozone's Flash Manufacturing PMI is expected to be unchanged at 54.4 and Flash Services PMI report is also expected to be unchanged at 54.5.
Meanhwile, GBP is still quite optimistic about the upcoming economic reports while EURO is softer. If the UK provided better-than-expected data today, further gain on the GBP side is expected which may lead to definite long-term bearish pressure in the pair, while EUR is struggling amid indecisive expectations.
Now let us look at the technical view. The price has rejected off the 0.8850 with a daily close yesterday after having certain corrections and volatile price action throughout the week. The price is currently residing above 0.8850 area with a daily close, the price is expected to push higher towards 0.8950 area in the coming days.
SUPPORT: 0.8850
RESISTANCE: 0.8950, 0.9050
BIAS: BEARISH
MOMENTUM: VOLATILE
