EUR/GBP has been struggling to break above the 0.8850 resistance level recently. The ECB and the Bank of England have already signaled a rate hike in the short term which triggered indecision among global investors. In light of the recent economic reports, GBP has been gaining ground against EUR which is already reflected on the chart of this pair. Today, Germany released a Factory Orders report with a worse than expected figure at 1.0% which was expected to be at 1.9%, Retail PMI showed a slight increase to 53.2 from 52.0, and ECB Monetary Policy Meeting Accounts were hawkish in nature which helped the currency to gain some weight today. On the GBP side, today Quarterly Housing Equity Withdrawal report was published at -10.4B which previously was at -10.6B and which was expected to show less deficit at -7.4B. Due to the negative report, GBP lost some grounds today against EUR and the breakout possibility is expected to rise well enough in the coming days. Though both currencies have Rate Hike tension in the market but EUR is currently having the upper hand over GBP which is expected to show some serious gains in the future for the EUR side.
Now let us look at the technical chart. The price is currently being hold by dynamic level support of 20 EMA. As the price remains above the 20 EMA there are higher chance of breaking above the resistance of 0.8850 level in the coming days. If the price breaks above the 0.8850 with a daily close, then we will be looking forward for a higher target towards 0.9050 resistance area. The bullish bias is expected to continue until price breaks below 20 EMA with a daily close.
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