EURGBP trades 0.10% higher at 0.9148 after EU June retail sales came in at +1.1% beating expectations of +0.3% m/m, while the EU June PPI came in at -0.6% worse that expectations of -0.3% m/m.
On the technical analysis side the short term momentum is positive for the pair as it trades above the major moving averages. After the huge run higher since May bottoming out around 0.8500 the pair hit a high of 0.9051 last week, and now looks trapped in narrow rectangle as investors are indecisive about the next move. The most possible scenario is for the pair to break higher continuing the recent uptrend. On the upside immediate resistance stands at 0.9167 today’s high while more offers will emerge at the 2017 high at 0.9306, followed by the 0.9582 level. On the downside first support stands at 0.9129 today’s low while next barrier is at 0.9125 the 50 hour moving average. A break below that level can accelerate the pressure down to 0.9042 the 200 hour moving average. Traders holding long positions can sit comfortably as long as the pair trades above 0.91. For those looking to sell EURGBP a break below 0.91 could be the signal for a correction down to 0.90 zone.Don’t miss a beat! Follow us on Twitter.