Fundamental Analysis of EUR/GBP for August 24, 2018
EUR/GBP has been quite non-volatile with the bullish gains recently. The price has recently broken above 0.8950 with a daily close. Though the pair is struggling for gains, EURO has been the dominant currency in the pair since the break above the range resistance 0.8850 area.
EUR has been consistently stronger fundamentally that helped the currency to extend strength against GBP in the process. Despite the BREXIT effect and Trade War situation, EUR has been outperforming GBP in several ways. Today German Final GDP was published unchanged as expected at 0.5% whereas GBP failed to meet the expectation ib light of High Street Lending report which showed a decrease to 39.6k from the previous figure of 40.3k, defying the forecast for an increase to 40.6k.
To sum up, EUR is the stronger currency in the pair fundamentally that is expected to lead to further bullish momentum in the process against GBP. Until the UK comes up with better economic data to develop a strong counter-move against EURO, the bullish trend is expected to continue.
Now let us look at the technical view. The price is currently heading lower while residing below the resistance area of 0.9030. The price is expected to retrace towards the dynamic levels of 20 EMA, Tenkan and Kijun line before starting to push higher above 0.9030 in the coming days. As the price remains above 0.8950, the bullish bias is expected to continue.
SUPPORT: 0.8850, 0.8950
RESISTANCE: 0.9030, 0.9150