EUR/GBP has been quite impulsive with the bullish gains today after breaking below 0.8750 price area recently. EUR has been quite positive with the economic reports today which helped the currency to gain impulsive momentum over GBP in this volatile market condition. Today EUR Italian Monthly Unemployment Rate decreased to 10.9% from the previous value of 11.1% which was expected to be at 11.0%. Moreover, CPI Flash Estimate report was published as expected at 1.4% increase from the previous value of 1.1%, Core CPI Flash Estimate report was published unchanged at 1.0% which was expected to increase to 1.1% and Unemployment Rate was also published with a decrease as expected to 8.5% from the previous value of 8.6%. On the other hand, GBP has been struggling with the economic reports recently whereas today GBP Construction PMI report was published with an unexpected decrease to 47.0 from the previous figure of 51.4 which was expected to be at 50.9. As of the current scenario, the positive economic reports of EUR and worse economic reports of GBP resulted to impulsive momentum on the EUR side today which is expected to increase the volatility and corrective sentiment in the market. Until EUR comes up with a series of high impact positive economic report results, the counter bullish momentum is expected to be temporary.
Now let us look at the technical view. The price is currently residing below 0.8750 price area from where certain bearish intervention is expected as the bearish trend is still quite powerful by now. The dynamic level of 20 EMA above the current price area is expected to resist further bullish momentum in the pair. As the price remains below 0.90 price area, the bearish bias is expected to continue.
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