EURGBP Looking For Direction After The Correction

The EUR to GBP pair managed to rebound today after five consecutive trading days of loses as the correction from seven-month highs stalled at 0.8880. The Germany Unemployment Rate registered in at 2.3%, below the expectations of 5.1% in March, the second-lowest March reading since the German reunification.

The UK Gross Domestic Product came in at 0% in line with forecasts for the fourth quarter; the yearly reading GDP came in at 1.1% also in line with expectations. The UK business confidence index hit -3% its lowest level since the financial crisis in 2009 in the week that started on March 9.

Governing Council member Ignazio Visco said that the ECB is ready to use all options available within its mandate to support the economy amid the coronavirus crisis. ECB has raised its goal for purchases of assets to around 1.1 trillion euros this year to fight the virus outbreak.

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EURGBP Price Technical Outlook  

EURGBP is 0.10% higher at 0.8895, cancelling the recent downward move and keeping the bullish momentum intact, and alive as long as the pair trades above the 200-day moving average.  

On the upside, first resistance stands at 0.8971 the daily high. A break above might challenge the next hurdle at 0.8992 the high from yesterday’s session. A break above that resistance might test the next resistance at 0.9092 the high from March 27th.   

On the contrary, first support for EURGBP stands at 0.8887 the daily low. A move below might test the next support at 0.8845 the low from March 13th trading session. More bids might emerge at 0.8755 the 200-day moving average. 

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