EURGBP – Critical Break Noted; More Upsides Ahead?

EURGBP – Critical Break Noted; More Upsides Ahead?

Key Highlights            

  • Euro managed to gain traction against the British Pound and traded above a major resistance area.
  • There was a contracting triangle on the hourly chart, which was broken during the upside move.
  • Today, the UK Gross Domestic Product will be released by the National Statistics, which is forecasted to increase by 0.5% in Q3 2015.
  • Today, in New Zealand, the Trade balance released by Statistics New Zealand posted a trade deficit of $-3.678B, less than the forecast of $-3.760B in November 2015.

EURGBP Technical Analysis

The Euro showed a lot of positive signs recently, and managed to recover not only against the US Dollar, but also against the British Pound. There was a contracting triangle on the hourly chart, which was breached by buyers to open the doors for more gains in the near term.

EURGBP

The EURGBP pair traded a few pips above the 0.7400 resistance area and currently struggling to settle above it. There is a chance of a minor recovery or we can say a correction, which can be seen as a buying opportunity.

On the downside, the broken triangle resistance area may now act as a support and holds losses if the pair moves lower from the current levels.

UK GDP

Today, the UK Gross Domestic Product, which is a measure of the total value of all goods and services produced by the UK will be released by the National Statistics. The forecast was lined up for an increase of 0.5% in Q3 2015, compared with the preceding quarter. If there is any disappointment, then we may see another round of selling in the British Pound.

New Zealand Trade Balance

Today during the Asian session, the New Zealand Trade balance, which is the difference between the value of country’s exports and imports, over a period of year was released by Statistics New Zealand. The market was expecting a trade deficit of $-3.760B, but the outcome was better as the trade deficit was of $-3.678B in Nov 2015.

The report stated that “Capital goods led the rise, with transport equipment up $293 million. Excluding large aircraft, total goods imports rose 6.3 percent to $4.5 billion, and capital goods rose $106 million”.



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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