EUR/GBP has been in a bullish non-volatile trend recently which is currently showing some retracement bouncing off from 0.8960 area. Euro has been quite positive in nature recently and had good economic reports as well which helped the currency to gain against the GBP where GBP is suffering from bad economic reports and political unrest in the country. Today we had GBP Prelim GDP report which was published as expected at 0.3% which previously was at 0.2%, BBA Mortgage Approvals report showed a slight decrease to 40.2k from the previous value of 40.3k which was expected to decrease more to 39.9k and Index of Services was also published as expected at 0.4% which previously was at 0.2%. GBP showed some gains over Euro today having positive economic reports and with no Euro economic events to compete against. Tomorrow Euro has Spanish Unemployment Rate report to be published which is expected to decrease to 17.7% from the previous value of 18.8% and M3 Money Supply report is expected to be unchanged at 5.0%. If the Euro economic reports come out positive tomorrow then we can see some gains on the Euro in the coming days or else counter trend possibility is also quite present in the market currently.
Now let us look at the technical view, the price is currently showing some bearish pressure today which is expected to take the price down towards 0.8850 and dynamic level of 20 EMA before proceeding further with the bullish trend with a much higher target towards 0.9050. As the price remains above the 20 EMA and 0.8850 with a daily close the bullish bias is expected to continue but currently, short term bearish pressure is expected as a form of retracement towards the support level.
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