EUR to GBP: EURGBP Tests the Top of Symmetrical Triangle Ahead of Euro Zone Data

EURGBP
EURGBP

The EUR to GBP exchange rate is trading higher in today’s trading, ahead of release of eurozone data. As of this writing, the currency pair is up by 0.17% at 0.8711.

Recent price action on EURGBP could be affected by data from the UK released earlier today. Rightmove’s HPI report for April showed that home prices for the month declined by 0.2% which follows a 1.0% uptick in March. This reading may have been bearish for the pound because it suggests lower inflationary pressures.

Later today, a few reports from the eurozone are due. At 9:00 am GMT, the region’s current account for February is eyed at 36.3 billion EUR. Then at 10:00 am GMT, trade balance for the same month is expected to print a surplus of 19.2 billion EUR. Positive figures would help EURGBP extend is upward trend because this would mean that demand for eurozone exports and the euro was high in February. Conversely, lower-than-expected readings could have a bearish effect on the currency pair.

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EUR to GBP Outlook

On the hourly time frame, it can be seen that EURGBP is trading in a symmetrical triangle. This chart pattern, considered as a neutral indicator, becomes apparent when you connect the currency pair’s recent highs and lows. As of this writing, EURGBP is testing the top of the triangle as it trades around 0.8708. If there are enough buyers for EURGBP to close above the top of the triangle around 0.8715, it could mean that the currency pair will extend its rally. Near-term resistance is a 0.8745 where it topped on April 15.

On the other hand, reversal candles around this level could indicate that there are still sellers in the market. The currency pair could then fall to the bottom of the triangle around 0.8690.

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