EUR/GBP recently bounced off the 0.8600 support area after non-volatile impulsive bearish pressure pushing price lower since the bullish rejection off the 0.9100 area back in December 2018. EUR has been trading mixed amid the economic reports today that weakened the impulsive pressure in the pair against GBP it created recently.
EUR and GBP have been sensitive to the BREXIT developments recently. As a result, GBP gained non-volatile momentum against EUR. British Prime Minister Theresa May has been on a conflict with the European Union recently after lawmakers told her to renegotiate the BREXIT divorce deal. The conflict led to certain indecision in the market while EUR failed to be consistently better amid the economic data published recently. Moreover, BREXIT may deal a blow to Germany's economy.
Recently UK Net Lending to Individuals report was published with an increase to 4.8B from the previous figure of 4.6B which was expected to decrease to 4.3B and M4 Money Supply was also increased to 0.4% from the previous value of 0.1% which was expected to be at 0.2%. Today, UK GfK Consumer Confidence report was published unchanged as expected at -14 and Nationwide HPI increased to 0.3% from the previous negative value of -0.7% which was expected to be at 0.2%.
On the EUR side, today Spanish Flash GDP report was published with an increase to 0.7% which was expected to be unchanged at 0.6% and Prelim Flash GDP report was published unchanged as expected at 0.2%.
Meanwhile, GBP has been more positive thanks to the recently published economic results but it failed to regain momentum over EUR that sustained the bullish momentum in the pair because of mixed economic reports. The current market bias indicates the sentiment of market participants. EUR is now winning favor with investors that opens the way for further gains.
Now let us look at the technical view. The price is currently approaching the dynamic level of 20 EMA after the recent bounce off the 0.8600 support area with a daily close. The price formed Bullish Extreme Divergence in the process which might lead to sustaining further bullish pressure in the process. As the price remains below 0.8850 area with a daily close, the bearish bias is expected to continue.
SUPPORT: 0.8500, 0.8600-50
RESISTANCE: 0.8850, 0.8950
The material has been provided by InstaForex Company - www.instaforex.com