- Euro traded higher against the British Pound recently and looks set for more gains.
- There was a channel pattern formed on the hourly chart of the EURGBP pair, which was broken to open the doors for more gains.
- German GfK Consumer Confidence released earlier today posted a decline from the last reading of 9.5 to 9.4 in April 2016.
- Moreover, the German Import price index, released by Deutsche Bundesbank posted a decline of 0.6% in Feb 2016%.
The Euro continued to gain traction against the British Pound, as it rocketed above a major resistance area of 0.7900-10, which may now act as a support zone. There was a channel pattern formed on the hourly chart of the EURGBP pair, which was broken to set the pace for more gains.
If the pair dips from the current levels, then buyers may appear around 0.7900-10. Alternatively, it may just break 0.7930 to trade higher.
On the upside, the next resistance area can be around the 0.7950 levels.
German GfK Consumer Confidence
In the Euro Zone today, GfK Consumer Confidence is a leading index that measures the level of consumer confidence in economic activity was released. The forecast was slated for no change in the index from 9.5 in April 2016. However, the outcome was a bit lower, as the index came in at 9.4.
The report stated that “weak demand for German products in certain important markets will probably not leave economic growth in Germany unaffected. A signal of this is the decline in economic expectations this month. Similarly, income expectations as well as propensity-to-buy have also lost steam. However, both indicators remain at an extremely high level in contrast to economic expectations”.
Overall, the EURGBP pair remains bullish and more gains are likely for the Euro in the near term.