EUR/GBP is currently holding at the support area from 0.8690 to 0.8760 where GBP is now the dominant currency in the pair. Recently. in light of positive economic reports, GBP gained good momentum to push harder against EUR to break out of the range it has been stuck for a few months now. Recently, UK Average Earning Index report was published unchanged as expected at 2.5% and Unemployment Rate was also unchanged as expected at 4.3%. Moreover, UK Claimant Count Change decreased to 8.6k from the previous figure of 12.2k, though the result beats expectations of 2.3k, but a decrease of Unemployment Claims in Great Britain is indeed a positive sign after the recent hard political issues. On the other hand, EUR is struggling with mixed economic reports which are due today. Minimum Bid Rate report is going to be published which is expected to inject good amount of volatility in the market. Today, EUR Minimum Bid Rate report is expected to be unchanged at 0.0% and ECB Press Conference will follow after that which is also expected to be quite neutral. As for the current scenario, GBP is expected to gain momentum despite eurozone’s high impact economic report and events this month. Some speculators expect the ECB to have no plans to change its interest rate this month as the economy has coped well and does not seem to be of great concern for GBP gains in the process.
Now let us look at the technical view. The price is currently residing at the edge of 0.8690 support area where a daily close below the level will open the doorway to 0.8400 support area for the price in the coming days. We might see some corrections along the way before the price breaks below 0.8690 and certain spikes would be no surprise. As the price remains below 0.88 price area, the bearish bias is expected to continue further.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Rocky Yaman,
InstaForex Group © 2007-2018
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