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EURGBP – Euro Forming Breakout Pattern Above 0.9040 Vs British Pound

Key Points

  • The Euro remains elevated above 0.9000 against the British Pound and looks set for more gains.
  • There is a major bullish trend line forming with support at 0.9025 on the hourly chart of the EURGBP pair.
  • Recently in the Euro Zone, Spain’s Consumer Price Index for July 2017 was released by the National Institute of Statistics.
  • The outcome was in line with the forecast, as there was a decrease of 0.7% in the CPI (MoM).

EURGBP Technical Analysis

The Euro gained a lot of pace and managed to settle above the 0.9000 handle against the British Pound. The EURGBP pair is currently positioned well above the 0.9040 support and the 21 hourly simple moving average.

EURGBP Technical Analysis Euro British Pound

There pair recently traded towards the 0.9075 level where it faced sellers and currently trading near the 23.6% Fib retracement level of the last wave from the 0.9008 low to 0.9076 high.

On the downside, the 21 hourly simple moving average at 0.9042 and the 50% Fib retracement level of the last wave from the 0.9008 low to 0.9076 high might act as a major support if the pair corrects lower. The pair remains buy on dips towards 0.9040-0.9025 as long as above 0.9000.

Spain’s Consumer Price Index

Today in the Euro Zone, Spain’s Consumer Price Index for July 2017 was released by the National Institute of Statistics. The market was positioned for a decrease of 0.7% in the index compared with the previous month.

The actual result was in line with the forecast, as there was a decrease of 0.7% in the CPI. In terms of the yearly change, the Consumer Price Index increased 1.5%, similar to the forecast and last reading of 1.5%.

Overall, the EURGBP pair may continue to trade in a range before making an attempt to break the 0.9080 resistance.

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