EUR/GBP is currently showing a bullish rejection after breaking above the 0.8550 resistance level. GBP is quite stronger than EUR in light of positive fundamental data published in the UK today. UK Average Earning Index came in as expected at 2.4% which previously was at 2.3%. Claimant Count Change decreased to 19.4k which previously was at 33.5k. Unemployment Rate was better than expected at 4.6% which was at 4.7% previously. On the other hand, the economic calendar contains positive reports from the eurozone. Italian Trade Balance report came in at 5.42B which was expected to be at 1.97B. Final CPI report was unchanged at 1.9% and Final Core CPI was also unchanged at 1.2%. Comparing the positive impact on both curencies, GBP has an upper hand over EUR in this pair. GBP is expected to advance further in this pair against EUR in the short run.
Now let us look at the technical chart. The price has already rejected buyers in this pair after the UK presented positive Unemployment Rate report and Average Earning Index. Currently the price is expected to move down towards 0.8550. If the price breaks below 0.8550 with a daily close, then we will consider sell positions with a downward target at 0.8420. On the other hand, if the price rejects off the 0.8550 support level, it would be wise to plan buy positions with an upward target towards 0.8780 – 0.8800 resistance area.
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