- Euro gained against the British Pound and it looks set for more upsides in the short term.
- EURGBP is following a bullish trend line on the 4-hours chart, which can be seen as a buy area.
- Today, the French Business Climate released by INSEE registered reading of 102, lower than the forecast of 103 in Jan 2016.
- ECB Interest Rate Decision was announced by the European Central Bank in which the central bank kept the interest rates unchanged at 0.05%.
The EURGBP pair recently corrected lower to test the 61.8% Fib retracement level of the last leg from the 0.7583 low to 0.7754 high where it found buyers. There is a monster bullish trend line on the 4-hours chart, which is also acting as a catalyst for the upside move.
The pair is showing a lot of bullish signs, and it looks like it may test the 0.7750 level once again. It may even break the stated level to trade further higher.
On the downside, the 0.7680 area can be seen as a support.
France Business Climate
Today, the French Business Climate, which represents a survey of the current business condition in France was published by INSEE. The forecast was a reading of 103 in January 2016, but the outcome was disappointing. The French Business Climate posted a reading of 102, and even the last one was revised down from 103 to 101.
The report added that “less industrialists than in December judge that stocks of finished products are above normal, the corresponding balance has decreased by 5 points and is inferior to its long-term average”.
Looking at the current market conditions, and the price action in EURGBP, there is a chance of more gains in the EURGBP pair in the near term.