EUR/GBP Upsides Remain Capped Near 0.8800

Key Highlights

  • The Euro remained confined in a broad range below the 0.8800 resistance against the British Pound.
  • There is a major bearish trend line in place with resistance near 0.8800 on the 4-hours chart of EUR/GBP.
  • On the downside, supports are seen near the 0.8720 and 0.8700 levels.
  • Today in the Euro Zone, the GDP report for Q1 2018 will be released, which is forecasted to post an increase of 0.4% (QoQ).

EURGBP Technical Analysis

The Euro was rejected from the 0.8700 support recently and traded higher against the British Pound. The EUR/GBP pair gained traction and moved above the 0.8720 resistance.

EURGBP Technical Analysis Euro British Pound

However, the upside move was limited by the 0.8800 resistance. There is also a major bearish trend line in place with resistance near 0.8800 on the 4-hours chart of EUR/GBP.

It seems like there is a large consolidation phase forming around the 0.8720-40 zone. On the upside, a break and close above the 0.8800 resistance level is needed for more gains. A successful close above 0.8800 could open the doors for a push towards the 0.9000 level.

On the flip side, if there is a downside correction, the pair will most likely find support near the 0.8720 level. Below this, the 0.8700 level is a crucial support and a pivot level. Should there be a downside break below 0.8700, the pair may perhaps trade down sharply towards 0.8600.

Today, there is a major release in the Euro Zone as the GDP report for Q1 2018 will be released. If the actual result beats the forecast of +0.4%, the Euro may perhaps gain traction in the near term.

EUR/USD recently settled above the 1.1700 barrier, which could help the overall market sentiment for the Euro in the near term.

Economic Releases to Watch Today

  • German Factory Orders for April 2018 (MoM) – Forecast +0.8%, versus -0.9% previous.
  • Euro Zone Gross Domestic Product Q1 2018 (QoQ) – Forecast 0.4%, versus 0.4% previous.
  • Euro Zone Gross Domestic Product Q1 2018 (YoY) – Forecast 2.5%, versus 2.5% previous.
  • US Initial Jobless Claims – Forecast 225K, versus 221K previous.


Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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