- Euro rocketed higher during the past couple of days against the British Pound, and looks set for more gains.
- There is a bullish trend line formed on the hourly chart of the EURGBP pair, which may act as a support area and a buy zone.
- Today, the German Industrial Production released by the Statistisches Bundesamt Deutschland posted a decline of 0.5% in Feb 2016, less than the forecast of -1.8%.
- In terms of the yearly change, there was a rise of 1.3% in Feb 2016.
The British Pound continued to face sellers against the Euro, as the EURGBP pair climbed higher towards 0.8050. There is a bullish trend line formed on the hourly chart of the EURGBP pair, which is serving support area and pushing the pair higher.
The pair well positioned above the 50 hourly simple moving average, which is a bullish sign. Buying dips from the current levels near the trend line support area can be opted.
On the upside, a break above the 0.8050 resistance area could take the pair towards 0.8100.
Earlier today, the German Industrial Production, which measures outputs of the German factories and mines was released by the Statistisches Bundesamt Deutschland. The market was expecting a decline of 1.8% Feb 2016. However, the outcome was a bit lower, as the decline was 0.5%.
The report added on the release that the “In February 2016, production in industry excluding energy and construction was down by 0.5%. Within industry, the production of capital goods and the production of consumer goods decreased by 1.0%. The production of intermediate goods showed an increase of 0.1%. Energy production was down by 1.8% in February 2016 and the production in construction increased by 1.3%”.
Overall, the Euro looks like positioning for more gains vs GBP, and any corrections may be seen as a buying opportunity.