- Euro weakened a lot against the US Dollar, but somehow it managed to gain bids against the British Pound and traded higher.
- EURGBP is facing a major resistance area near 0.7050 that may act as a pivot zone.
- German Retail Sales released by the Statistisches Bundesamt Deutschland posted a decline of 0.4% in October 2015, which was more than the forecast.
- German consumer price index was also released today that posted an increase of 0.1% in November 2015.
The EURGBP fell close to 0.7000 support area recently where it found buyers for an upside move. The pair is currently moving higher, but facing a monster barrier in the form of the 61.8% Fib retracement level of the last drop from the 0.7079 high to 0.7003 low.
On the downside, there is a bullish trend line formed, which is acting as a support area along with the 100 and 50 hourly simple moving average.
The hourly RSI is above the 50 level, i.e. is a positive sign for bulls in the near term.
Today, the Germany consumer price index, which measures the average price change for all goods and services purchased by households for consumption purposes was reported by the Statistiches Bundesamt Deutschland. The market was expecting a rise of 0.1% in November 2015, compared with the preceding month. The outcome was in line with the forecast, and registered a reading of 0.1%.
In terms of the yearly change, the forecast was of a 0.4% rise in November 2015, compared with the same month a year ago. Once again, the outcome was as expected. However, the result failed to help the shared currency to great extent.
Overall, more gains in the EURGBP pair depends on the 0.7050 resistance area. A failure to break it may call for a downside move.