EURGBP Slightly Lower After Dismal EU Data
EURGBP trades lower today at 0.9282 after a sequence of dismal economic data from European Union. The Germany ZEW Economic Sentiment came in at -44.1 below expectations of -28.5 in August, the Current Situation came in -13.5 also below expectations of -7 in August. A big disappointment also came from the EU Economic Sentiment which came in at -43.6, below expectations of -21.7 in August.
On the technical analysis side the bulls are in full control of EURGBP as the pair trades above all major moving averages. The pair registered a huge run higher since May bottoming out around 0.8500 and hitting the high of 0.9323 in August 12th. The most possible scenario is for the pair to break higher continuing the recent uptrend, with a correction into the ascending channel. On the upside immediate resistance stands at 0.9323 recent high while more offers will emerge at the 0.9582 level. On the downside first support stands at 0.9266 today’s low while next barrier is at 0.9252 the 100 hour moving average. A break below that level can accelerate the pressure down to 0.9211 the 200 hour moving average. Traders holding long positions can sit comfortably as long as the pair trades above 0.92. For those looking to sell EURGBP a break below 0.92 could be the signal for a correction down to 0.90 zone. The RSI on the daily chart is at overbought levels and that increases the case for a retreat down to 0.90 zone.