EUR/GBP is currently residing at the edge of 0.8850 area after an impulsive bearish momentum in the pair. The price has been rejected from the resistance area of 0.8950 wih a daily close. Both EUR and GBP has been showing mixed dynamics amid the recent economic reports. Nevertheless, GBP has the upper hand in the currency pair.
Today German Factory Orders report is going to be published which is expected to increase to 0.7% from the previous negative value of -0.9%, German PPI is expected to be unchanged at 0.2%, and Italian Retail Sales are expected to increase to 0.2% from the previous negative value of -0.1%. Moreover, today French Government Budget Balance is going to be published which previously was at -82.8B.
On the GBP side this week, the UK also posted some economic reports which came in line with expectations. Today UK Halifax HPI report is going to be published which is expected to increase to 0.2% from the previous value of 0.1%. After predictable Services PMI report, GBP gained certain momentum which is expected to push further on the GBP side if GBP outperforms EUR.
Meanwhile, EURO may show resilience against GBP ahead of a series of macroeconomic reports from the eurozone which are due later today. The reports are expected to reveal solid readings.
Now let us look at the technical view. The price has reached the edge of 0.8850 support area from where having a Bullish Divergence in place, the price is expected to push higher towards 0.8950 area in the coming days. As the price remains above 0.8850 with a daily close, the counter momentum is expected to push the price higher in the process.
SUPPORT: 0.8850
RESISTANCE: 0.8950
BIAS: BEARISH
MOMENTUM: VOLATILE
