The EUR to GBP turned lower after another rejection at the 200-day moving average. The European Monetary Union Retail Sales came in at 0.6% in line with forecasts in January, the retail sales yearly reading came in at 1.7%, topping the expectations of 1.1%. Earlier today Germany retail sales came in below the expectations at 0.9%. The economic data from the UK failed to impress investors, as the services PMI came in at 53.2 below the market consensus of 53.3.
Many traders now increase bets that the ECB might proceed with an interest rate cut and additional fiscal stimulus to offset the coronavirus impact a move that might put pressure in the common currency.
Read our Best Trading Ideas for 2020.
EURGBP Technical Outlook
EURGBP is 0.35% lower at 0.8682 after the pair rejected for the third time at the 200-day moving average a failure that might attract more sellers in the pair. Today’s rejection, paused the recent rally from February lows. The technical outlook is still positive for the pair but failure to break soon above the 200-day moving average might start a correction to the 100-day moving average.
On the downside, the first obstacle for the EURGBP pair stands at 0.8679 the daily low. Next level of support is at 0.8594 the low from March 2nd. The 100-day moving average at 0.8514 would provide the next support zone.
On the other hand, the first resistance area stands at 0.8744 the daily top and the 200-day moving average. A break above might test the next resistance at 0.8811 the high from October 14th,. The next supply zone will be met at 0.8869 the high from October 11th.
Don’t miss a beat! Follow us on Telegram and Twitter.
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.