EUR/GBP is currently struggling at the edge of 0.8850 as of Hawkish Statement of ECB President Draghi and Bank of England President Carney signaling Interest Rate hike considering the upcoming economic global economic boom. Today EUR GfK German Consumer Climate report was published with a slightly better figure at 10.6 which was expected to be unchanged at 10.4, Spanish Flash CPI report was published with the worst figure at 1.5% which was expected to be at 1.6% decreasing from previous value of 1.9% and German Prelim CPI report is yet to be published which is expected to rise to 0.0% from previous value of -0.2%. On the GBP side, today Net Lending to Individuals report showed an increase to 5.3B which was expected to be at 4.0B, M4 Money Supply was published with a negative figure of -0.1% which was expected to be unchanged at 1.3% and Mortgage Approvals was published with an unchanged figure of 65K which was expected to decrease to 64k. To sum up, both currencies are in top form fighting for establishing a trend in the market where GBP is expected to have an upper hand due to Rate Hike bias in the market.
Now let us look at the technical view, the price has rejected off the resistance of 0.8850 and currently being held by 20 EMA as a support. If the price breaks below 20 EMA with a daily close then we will be looking forward to selling with a target towards 0.8550 support level. On the other hand, if the price breaks above 0.8850 with a daily close above it, we will be looking forward to buying with a target towards 0.90 in the coming days. Currently, the market is in bullish bias until price breaks below 20 EMA with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com