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EURGBP – Euro Remains Buy on Dips Vs British Pound

Key Points

  • The Euro started a new upside move from the 0.8750 swing low against the British Pound.
  • There is a major bullish trend line forming with support at 0.8935 on the hourly chart of EURGBP.
  • Recently in the Euro Zone, the German Industrial Production for August 2017 was released by the Statistisches Bundesamt Deutschland.
  • The outcome was above the forecast of +0.7%, as the German Industrial Production increased 4.7% (MoM).

EURGBP Technical Analysis

The Euro made a nice upside move from the 0.8750 swing low against the British Pound. The EURGBP pair climbed higher and surpassed the 0.8850 and 0.8900 resistance levels along with the 21 hourly simple moving average.

GBPJPY Technical Analysis

The pair traded as high as 0.8992 recently and currently correcting lower. It has breached the 23.6% Fib retracement level of the last wave from the 0.8850 low to 0.8992 high.

On the downside, there is a major bullish trend line forming with support at 0.8935 on the hourly chart. The trend line support crucial since it is near the 21 hourly SMA and the 38.2% Fib retracement level of the last wave from the 0.8850 low to 0.8992 high.

German Industrial Production

Recently in the Euro Zone, the German Industrial Production for August 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for the production to increase by 0.7% compared with the previous month.

The actual result was above the forecast of +0.7%, as the German Industrial Production increased 4.7%, more than the last revised -0.1%. Moreover, the yearly change was +4.7%, which was more than the last revised +4.2%. The report added that:

In August 2017, production in industry excluding energy and construction was up by 3.2%. Within industry, the production of capital goods increased by 4.8% and the production of consumer goods by 2.1%. The production of intermediate goods showed an increase of 1.8%. Energy production was up by 1.7% in August 2017 and the production in construction decreased by 1.2%.

Overall, the EURGBP pair remains buy on dips near the 0.8935 support area.

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