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Market Analysis

Home » Featured » EURGBP to Remain Under Bearish Pressure

EURGBP to Remain Under Bearish Pressure

Posted by FXTimes in Featured - October 30th, 2015 12:31 pm GMT

eurogroup-kypros-570

Key Points

  • Euro continued to move down against the British Pound and it looks like it might head lower.
  • There was a bullish trend line breached on the hourly chart, which increased the bearish pressure on the EURGBP pair.
  • German Retail Sales released by the Statistisches Bundesamt Deutschland posted no change in September 2015, less than the forecast of a 0.4% rise.
  • Italian Consumer Price Index released by the Istituto Nazionale di Statistica posted an increase of 0.2% in October 2015, more than the forecast of 0.1%.

Technical Analysis

The EURGBP pair moved lower and traded below a major trend line and support area. There was a new low formed at 0.7144 where buyers are fighting to prevent the downside.

EURGBP

There is now one more trend line formed on the hourly chart of the EURGBP pair, which is acting as a support. A break below it could take the pair lower one more time.

On the upside, the 100 hourly simple moving average is waiting to act as a hurdle for buyers at 0.7180-90.

German Retail Sales

Earlier during the London session, there were many economic releases in the Euro Zone. The German Retail Sales, which is a measure of changes in sales of the German retail sector was released by the Statistisches Bundesamt Deutschland. The market was expecting an increase of 0.4% in the sales in September 2015. The outcome was on the lower side, as there was no change in the sales in September 2015.

Moreover, when we look at the yearly change, then the German retail sector posted an increase of 3.4% in September 2015, compared with the same month a year ago. This was also on the lower side as the market was expecting 4.2%.

Similarly, there were some other releases as well, and the outcomes were mixed. The Euro is making an attempt to move higher, but there is no denial that it is facing a lot of hurdles on the way up.

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