EUR/GBP has been quite impulsive with the bullish gains after breaking above the 0.87 price area with a daily close. The worse economic reports published in the UK recently had a great impact on the gains of GBP which led to certain weakening against EUR in the process.
EUR has been quite mixed with the recent economic reports results which has led to certain indecision lately. However, as GBP is still losing ground, EUR established sustainable bullish pressure in the pair already. Today, EUR CPI Flash Estimate report was published with a slight decrease to 1.2% which was expected to be unchanged at 1.3%, Core CPI Flash Estimate decreased to 0.7% from the previous value of 1.0% which was expected to be at 0.9% and PPI report was published unchanged as expected at 0.1%. Moreover, today the eurozone's economic forecast was published which had a neutral impact on the market as some risks in further growth has been recently identified.
On the other hand, the UK continued its series of negative economic reports even today having Services PMI report not meeting the expectation of 53.5 which was published with actual figure of 52.8 with certain increase from the previous figure of 51.7. Though GBP showed certain increase in the Services PMI report but not meeting expectation had negative impact on the market sentiment leading to more weakness of the currency in the process.
Now let us look at the technical view. After the recent false break below 0.87 area, the price is currently residing above 0.8750 with a daily close which had confluence from the trend line as support. The price is currently expected to push much higher with target towards 0.90 resistance area in the coming days. As the price remains above 0.87 area, the bullish bias is expected to continue further.
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