EUR/GBP has been quite impulsive in the bearish bias recently which is expected to lead the price towards 0.8850 area in the process. Recently GBP has been the dominant currency in the pair against EUR. GBP pushed the price lower despite the macroeconomic reports published this week in the eurozone.
Despite confusion amid the mixed data this week, EUR has lost ground against GBP in the process. Today French Consumer Spending report was published with an increase to 0.8% from the previous value of 0.1% which was expected to be at 0.3%, French Prelim CPI decreased to -0.2% from the previous value of 0.5% which was expected to increase to -0.1%, Spanish Flash CPI report was published unchanged as expected at 2.2%, and German Unemployment Change had positive outcome with a decrease to -23k from the previous figure of -10k which was expected to be at -9k.
On the other hand, today the UK Current Account report was published with a decrease to -20.3B from the previous figure of -15.7B which was expected to be at -19.4B, Final GDP report was published unchanged as expected at 0.4%, and Revised Business Investment report was published with a decrease to -0.7% which was expected to be unchanged at 0.5%.
Meanwhile, despite worse economic readings in comparison to the data from the eurozone, GBP is still quite stable with the gains which indicates the ongoing momentum in the pair despite the fundamentals. Though EUR has been quite mixed which lead the price to lose certain momentum, any positive data from the UK in the coming days may lead to further bearish pressure in the pair.
Now let us look at the technical view. After breaking below 0.8950 with a daily close, the price has been quite impulsive and non-volatile indside the bearish bias which recently broke and retested the dynamic level of 20 EMA as well. As the price remains below 0.8950 area, the bearish pressure is expected to continue with a target towards 0.8850 and later towards 0.8700 area in the future.
SUPPORT: 0.8850, 0.8700
RESISTANCE: 0.8950, 0.9050
BIAS: BEARISH
MOMENTUM: IMPULSIVE
