EURGBP Breaks Above 0.85 On Stronger European Monetary Union Data
The EUR to GBP breaks above the 0.85 mark after a series of positive data out of the European Monetary Union. The Industrial Confidence in the Union came in at -6.1 above the expectations of -7.3 in February. The European Monetary Union Business Climate came in at -0.04, topping the forecasts of -0.28. The Consumer Confidence registered at -6.6 in line with estimates. Sentiment Indicator also increased to 103.5 in February above the previous reading of 102.8.
The British pound is under selling pressure today as UK authorities keep a hard line on trade talks with the EU, stating that they were willing to operate without a deal if they don’t achieve one in four months.
EURGBP is 0.85% higher at 0.8504 as the rebound from two-month lows accelerates after the pair pierced above the descending trendline that began in early October 2019. The technical outlook is neutral as EURGBP managed to break also above the 50-day moving average.
On the upside, the daily top at 0.8506 will be the first resistance point. A break above might test the next hurdle at 0.8518 the 100-day moving average. The next supply zone stands at 0.8552 the high from January 20.
On the other side, the first support for the EURGBP pair stands at 0.8427 the daily low. Next level of support is at 0.8359 the low from February 26. More bids might emerge at the February 25th low at 0.8337.