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Dec 08, 2016

05:21 PM EDT


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Market Analysis

Home » Featured » EURGBP Continues To Mount

EURGBP Continues To Mount

Posted by FXTimes in Featured - January 7th, 2016 12:44 pm GMT

euro eurusd

Key Points

  • Euro enjoyed decent gains against the British Pound and traded above the 0.7400 resistance area.
  • The EURGBP pair is likely heading towards the 1.618 Fibonacci of the last leg.
  • German Retail Sales released by the Statistisches Bundesamt Deutschland registered an increase of 0.2%, which was lower compared with the forecast of 0.5%.
  • In the UK, the Halifax House Price Index was reported by the HBOS, which came in at 1.7% in December 2015, higher compared with the expectation.

Technical Analysis

The EURGBP pair recently moved above the previous swing high of 0.7424 and it looks like it may head towards the 1.618 Fibonacci of the last drop from the 0.7424 high to 0.7317 low.

EURGBP

There is a monster support trend line formed on the 4-hours chart, which is likely to act as a barrier for sellers if the pair moves down. The pair is above the 50, 100 and 200 simple moving average (H4), which is a positive sign.

On the upside, we can eye a test of 0.7490 in the near term.

UK Halifax House Price Index

Today, there was no major release in the UK except the Halifax House Price Index, which helps in presenting house prices and property price movements on a like-for-like basis. The forecast was marked for a rise of 0.3% in December 2015, compared with the previous month. However, the end-result was encouraging, as the Halifax House Price Index managed to climb by around 1.7%.

The report stated that “House prices in the latest three months (September-November) were 1.4% higher than in the preceding three months (June-August). The quarterly rate of change fell from October’s 2.8% to the lowest since December 2014 (0.3%)”.

Overall, the reports were not that bad, but the market sentiment was bullish for EURGBP and bearish for GBP, which may continue moving ahead.

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