EURGBP at Make it or Break Levels

Key Highlights

  • Euro’s slide against the British pound gained pace as sellers managed to take it lower.
  • EURGBP tested the 0.7200 support area where buyers just managed to protect the downside.
  • Today, in the Euro zone the Portugal Consumer Price Index was released by Statistics Portugal, which posted a rise of 1.9% in March 2015, compared to the preceding month.

Technical Analysis

The Euro earlier today gained a few bids and traded higher to test the 0.7270 level against the British pound. In the process, the EURGBP pair also cleared an important channel resistance trend line on the hourly chary as well. However, it turned out to be a false break and ignited and a lot of selling interest was seen around the 100 hourly simple moving average.

EURGBP 04.13.2015

As a result, the pair dived sharply and tested the channel support trend line, which somehow managed to hold the downside. There is no denial that the shared currency is under bearish pressure, as it was also seen trading lower against the US dollar.

If the EURGBP pair manages to correct higher from the current levels, then initial hurdle can be seen around the 23.6% fib retracement level of the last drop from the 0.7269 high to 0.7202 low.

Portugal Consumer Price Index

Earlier today, there was a major release lined up in the Euro zone as Portugal Consumer Price Index measuring price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by Statistics Portugal. The report was on the positive side, as the Portugal Consumer Price Index managed to post a rise of 1.9% in March 2015, compared to the preceding month. It was above the expectation and significantly higher when compared to the last decline of 0.1%.

Portugal CPI

When we speak of the yearly change, then Portugal Consumer Price Index rose 0.3% in March 2015, compared to March 2014. The last decrease was of 0.2%, so there was again a sharp increase noted for the annual change in the CPI. However, there was no impact on the Euro and buyers failed to gain strength post release.

Moving ahead

EURGBP has a major support at 0.7200, which if breached might open the doors for more downsides.

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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