Key Highlights
- The Euro made a nice upside move from the 0.8810-0.8800 area against the British Pound.
- There was a break above a major bearish trend line with resistance at 0.8855 on the 4-hours chart of EUR/GBP.
- The Germany’s wholesale price Index in Oct 2017 posted no change, whereas the forecast was +0.4% (MoM).
- Today in the UK, the CPI for Oct 2017 will be released which is forecasted to increase by 3.1% (YoY).
EURGBP Technical Analysis
The Euro after declining towards 0.8800 against the British Pound found support. The EUR/GBP pair traded higher recently and broke an important resistance near 0.8865.
During the upside move, there was a break above a major bearish trend line with resistance at 0.8855 on the 4-hours chart. The pair also settled above 0.8850, the 200 simple moving average (green, 4-hour) and the 100 SMA (red, 4-hour).
The current price action is positive with a close above the 50% Fib retracement level of the last decline from the 0.8937 high to 0.8791 low. On the upside, the next major hurdle for buyers is near 0.8950, followed by another bearish trend line at 0.8970. On the downside, supports are at 0.8865 and 0.8850.
Germany’s Wholesale Price Index
Recently in the Euro Zone, the Germany’s wholesale price Index for Oct 2017 was released by the Statistisches Bundesamt Deutschland. The forecast was slated for an increase of 0.4% in the WPI in Oct 2017 compared with the previous month.
However, the actual result was disappointing, as there no change in the index. The yearly change in the WPI was +3%, which was less than the last +3.4%. For the complete list and details, please visit this link.
Overall, the EUR/GBP pair is showing a lot of positive signs, but it might struggle to break the 0.8950 and 0.8970 levels in the near term.
Economic Releases to Watch Today
German Consumer Price Index for Oct 2017 (YoY) – Forecast +1.6%, versus +1.6% previous.
German Consumer Price Index for Oct 2017 (MoM) – Forecast 0%, versus 0% previous.
German ZEW Business Economic Sentiment Index for Nov 2017 – Forecast 20, versus 17.6 previous.
UK Retail Price Index Oct 2017 (YoY) – Forecast +4.1%, versus +3.9% previous.
UK Producer Price Index Oct 2017 (YoY) – Forecast +2.9%, versus +3.3% previous.
UK Producer Price Index Oct 2017 (MoM) – Forecast +0.3%, versus +0.2% previous.
UK Consumer Price Index Oct 2017 (YoY) – Forecast +3.1%, versus +3.0% previous.
UK Core Consumer Price Index Oct 2017 (YoY) – Forecast +2.8%, versus +2.7% previous.
Euro Zone Gross Domestic Product Q3 2017 (QoQ, Prelim) – Forecast 0.6%, versus 0.6% previous.
Euro Zone Gross Domestic Product Q3 2017 (YoY, Prelim) – Forecast 2.5%, versus 2.5% previous.
US Producer Price Index Oct 2017 (MoM) – Forecast +0.1%, versus +0.4% previous.
US Producer Price Index Oct 2017 (YoY) – Forecast +2.4%, versus +2.6% previous.
