- Summary:
- EURGBP is under pressure today after EU finance ministers failed to reach an agreement on a rescue plan to support the coronavirus hit economies.
EURGBP is under pressure today after EU finance ministers failed to reach an agreement on a rescue plan to support the coronavirus hit economies. The European economy has been struck hard by the coronavirus outbreak as governments impose strict lockdowns that have closed business activity and put everyday life on hold.
Economic institutions in Germany are forecasting a contraction of 9.8% in the Q2 of 2020 after shrinking by 1.9% in the Q1. Industrial output growth is set to fall by 4.2% in 2020 and rebound by 5.8% in 2021. Consumer prices are set to rise by 0.6% this year and pick up to 1.2% next year.
The Bank of France said the economy contracted by 6% in the first quarter and that every two weeks of lockdown cost the economy 1.5% in yearly growth.
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EURGBP Price Technical Analysis
EURGBP is 0.17% lower at 0.8812, as a correction from recent highs continues. The pairs correction stalled at the 50-day moving average the previous week. The technical outlook bullish as long as the pair trades above the major daily moving averages.
On the downside, first support for EURGBP pair stands at 0.8803 the daily low. A settlement below might test the next support zone at 0.8701 the 200-day moving average. More bids would emerge at 0.8701 the 50-day moving average.
On the other side, the initial resistance stands at 0.8832 the daily top. A break above might challenge the next hurdle at 0.8866 the high from April 7. A credible break above that resistance might test the next hurdle at 0.8912 the high from April 1.