Key Highlights
- The Euro started an upside correction from the 0.8720 support against the British Pound.
- There is a major ascending channel formed with support at 0.8800 on the 4-hours chart of EUR/GBP.
- The UK CBI Industrial Trends Orders Survey declined from -1 to -6 in Oct 2018 (MoM).
- Today, the Euro Zone Manufacturing PMI for Oct 2018 (Preliminary) will be released, which is forecasted to decline from 53.2 to 53.0.
EURGBP Technical Analysis
After a major decline, the Euro found support near the 0.8720 level against the British Pound. The EUR/GBP pair started an upside move and traded above the 0.8780 and 0.8800 resistance levels.
Looking at the 4-hours chart, the pair recovered nicely above the 0.8780 level. It even moved above the 38.2% Fib retracement level of the last slide from the 0.8995 high to 0.8723 low, and the 100 simple moving average (red, 4-hours).
However, the pair struggled to clear the 0.8860 resistance and the 50% Fib retracement level of the last slide from the 0.8995 high to 0.8723 low. The pair declined and tested the 0.8800 support area.
There is also a major ascending channel formed with support at 0.8800 on the same chart. As long as the pair is trading above the 0.8800 support, it could bounce back towards the 0.8860 resistance.
Above 0.8860, the pair will most likely surge towards the 0.8900 level. On the other hand, a break below 0.8800 may push the pair towards the 0.8750 level in the near term.
Looking at EURUSD, the pair remains in a bearish zone below 1.1550, and GBP/USD recently declined towards the 1.2950 support area.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for Oct 2018 (Preliminary) – Forecast 53.4, versus 53.7 previous.
- Germany’s Services PMI for Oct 2018 (Preliminary) – Forecast 55.5, versus 55.9 previous.
- Euro Zone Manufacturing PMI Oct 2018 (Preliminary) – Forecast 53.0, versus 53.2 previous.
- Euro Zone Services PMI for Oct 2018 (Preliminary) – Forecast 54.5, versus 54.7 previous.
- US Manufacturing PMI for Oct 2018 (Preliminary) – Forecast 55.5, versus 55.6 previous.
- US Services PMI for Oct 2018 (Preliminary) – Forecast 54.0, versus 53.5 previous.
- US New Home Sales for Sep 2018 (MoM) – Forecast -1.4% versus +3.5% previous.
- BoC Interest Rate Decision – Forecast 1.75%, versus 1.5% previous.
