EUR to GBP rebounds sharply today adding 0.59% at 0.8529 after the Bank of England Governor Mark Carney said that can act immediately with 250 basis points cuts if needed through traditional cuts as well as quantitative easing and forward guidance.
Euro is getting a boost from German Industrial Production s.a. (month over month) which came in at 1.1%, beating expectations of 0.7% in November, the yearly reading also beat forecasts as it came in at -2.6%. The Germany Trade Balance registered at €18.3B below estimates of €20B in November.
The Unemployment Rate in European Monetary Union came in at 7.5% in line with forecasts in November.
On the Brexit front, European Union Brexit Negotiator Michel Barnier, said that a failure to reach a Brexit deal will be more harmful for the UK than the EU.
EURGBP recovers all of yesterday losses and jumps up to the 50-day moving average resistance which if breached today might be the beginning of a bullish leg higher.
On the technical analysis side the momentum is neutral, as the pair keeps the rebound from the December lows alive and attempts a move above the 50-day moving average. On the upside, immediate resistance for EURGBP stands at 0.8533 the daily high. If EURGBP manages to break above that level the next resistance point is at 0.8592 the high from December 23. Bulls can cancel the negative momentum and seize control of the pair if can pierce above the 100-day moving average at 0.8695.
On the contrary, initial support for the pair stands at 0.8471 the daily low. Next support area will be met at 0.8455 the low from December 31st. In case the pair breaks below will pave the way for a move down to 0.8275 the low from December 13.