EUR/GBP is currently quite volatile and corrective around the edge of breaking above 0.8950 resistance level. EUR and GBP both are going through series of bad economic reports which confused the market sentiment to ensure a direct move in the coming days. ECB has been providing hints about rate hike and with its hawkish statement in recent conferences the sentiment has been quite with the EUR but GBP is also showing some hawkish sentiment as BOE is also looking forward to the rate hiking in the future. Today EUR Spanish Unemployment Change report was published with the worst figure at -26.9k from the previous figure of -98.3k which was expected to be at -66.5k and EUR PPI was also published as expected at -0.1% which previously was at -0.3%/. On the GBP side, today Construction PMI report was published with the worst figure at 51.9 from the previous figure of 54.8 which was expected to be at 54.3. Despite the worst figure at the GBP side, the currency is currently showing some gains over EUR in this corrective volatile structure. The market is still quite indecisive but GBP is expected to have an upper hand over EUR in the coming days.
Now let us look at the technical view, the price is currently quite corrective at the edge of 0.8950. After breaking above the important level of 0.8850 the price has been quite volatile recently which does indicate the bearish presence in the market which is currently stopping the existing bullish pressure to gain further. A daily close below or above 0.8950 will provide hints on the further move in this pair but by considering the corrective price action bearish pressure is expected in this pair with a target towards 0.8850 in the coming days. As the price remains above 0.8850 the bullish bias is expected to continue with short-term bearish pressure recently in sight.
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