EURGBP
The EUR to GBP trades higher today getting a boost from better IFO business survey from Germany. The Germany IFO Business Climate came in at 96.1 beating the forecasts of 95.3 in February. The IFO Business Climate in Germany came in at 96.1 above the expectations. The IFO Current Assessment index came in at 98.9 also topping the market’s expectations of 98.6. The IFO Expectations survey registered at 93.4 beating the forecasts of 92.2. The Institute noted that the development of the coronavirus outbreak is not yet fully reflected in the survey.
Stronger data out of the UK economy implies that the Bank of England will stay on hold on the next monetary policy meeting.
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EURGBP is 0.22% higher at 0.8385 as the pair continues the rebound from two-month lows. The trend is bearish despite today’s positive session, as the pair is still trading below the major daily moving averages.
On the upside, initial resistance will be met at 0.8384 the daily top. A break above might test the next supply zone at 0.8413 the high from February 20. The next resistance zone is at 0.8461 the 50-day moving average.
On the downside, initial support for the EURGBP pair stands at 0.8344 the daily low. Next support zone to watch is the February 19th low at 0.8297, which guards the 2020 lows at 0.8280.