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.
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.
