- Summary:
- EURGBP is 0.09 lower at 0.8414 having recovered earlier heavy losses from monthly lows. The pound was under pressure after the UK officials
EURGBP is 0.09 lower at 0.8414 having recovered earlier heavy losses from monthly lows. The pound was under pressure after the UK officials announced the confirmation of two coronavirus cases in the country. The British pound got a boost yesterday from the Bank of England. The central bank kept the interest rates unchanged at 0.75% disappointing many investors who expected a rate cut to 0.5%. That gave a boost to GBP.
In the economic data front the European Monetary Union Gross Domestic Product (QoQ) came in at 0.1% below the market’s expectations of 0.2% for the fourth quarter of 2019. The yearly GDP reading registered in at 1% below forecasts of 1.1%. The European Monetary Union Consumer Price Index came in at 1.1%, below the forecasts of 1.2% in January. German retail sales disappointed investors. The Retail Sales (MoM) came in at -3.3% below the expectations of -0.5% in December. The yearly reading also came in at 0.8% below the forecasts of 5%.
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EURGBP Technical Analysis
EURGBP failed yesterday to break above the 50-day moving average as the GBP helped by the Bank of England decision. So bulls lost an opportunity to cancel the recent bearish momentum. The technical outlook for EURGBP is clearly bearish now and any upside move could be considered a selling opportunity.
On the downside, first support for the EURGBP stands at 0.8387 the daily low. Next support for the pair would provide the December 17th low at 0.8352. A convincing break below might open the way for a move down to 0.8300 the low from December 16th.
On the other hand, initial resistance for the EURGBP pair will be met at 0.8431 the daily top. The next resistance stands at 0.8491 the 50-day moving average. In case of a breakout the next resistance will be met at 0.8536 the high from January 24.