The EUR to GBP exchange rate has been on a strong bullish rally for the past few days. Can it extend its winning streak to seven days with today’s roster of economic reports from the euro zone and the UK?
Lately, coronavirus-related sentiments have been dictating price action on currencies. The EUR to GBP exchange rate has been no exception. Its recent surge can be attributed to the UK’s chosen method of containing the virus which is through herd immunity.
Today, however, we will get a handful of top-tier economic data which could steer away the market’s focus from the pandemic.
At 9:30 am GMT, the UK’s labor figures for February are due. The Claimant Count Change report is expected to print at 6,200 while the unemployment rate is seen to match its previous reading at 3.8%. As for the average hourly earnings, it is eyed to print a 3.0% uptick compared to the quarter ending in January.
Then at 10:00 am GMT, the German ZEW Economic Sentiment report is eyed at -29.7. The euro zone wide version of the report for the month of March is anticipated at -23.1.
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EUR to GBP Exchange Rate Outlook
On the hourly time frame, the uptrend on EURGBP is seen to be intact. The currency pair has been making higher lows. However, it’s worth pointing out that the currency pair has been making steady highs as of late. Consequently, an ascending triangle pattern has formed. This is widely considered as a bullish continuation signal. A close above yesterday’s highs at 0.9148 would constitute an upside break. It may then mean that the EUR to GBP exchange rate is on its way up to its August 9 highs at 0.9310.
On the other hand, a bearish close below today’s low at 0.9095 would effectively break the trend line support (from connecting the lows of March 13 and March 16). If this happens, the next support level could be a 0.9040 where a second trend line (from connecting the lows of March 11 and March 13) seems to be.
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