EURGBP Rebounds On Stronger European Employment Change
EURGBP trades higher today after four consecutive sessions of losses. Strong economic data from the UK boosted British pound. Today, slightly better German GDP data helps the pair to recover some of yesterday’s losses. The yearly reading for the German GDP registered at 0.3% beating the expectations of 0.2%. German GDP for the fourth quarter came in at 0.0% below the expectations of 0.1%. The German Federal Statistical Office (Destatis) also reported that the resulting GDP growth was 0.6% for the year 2019.
Eurozone economy steadied in the fourth quarter amid weaker Germany economy. The European Monetary Union Gross Domestic Product quarterly reading came in at 0.1% in line with expectations. The yearly Gross Domestic Product reading came in at 0.9% below the forecasts of 1%.
The European Monetary Union Employment Change came in at 0.3%, topping the forecasts of 0.1% in the fourth quarter.
EURGBP is 0.14% higher in an attempt to return inside the Bollinger Bands as the pair the last two trading sessions is hovering outside of the lower band. The pair yesterday hit two-month lows amid GBP strength. The EURGBP technical analysis outlook is bearish and only a move above the 50-day moving average can cancel the bearish momentum.
On the upside, first resistance stands at 0.8330 the daily high. Next supply zone stands at 0.8400 the high from yesterday’s trading session. The critical resistance point is at 0.8471 the 50-day moving average.
On the other hand, initial support for the EURGBP pair stands at 0.8299 the daily low. A break below that support level would open the way for a move down to 0.8359 the low from December 17th. Next support to watch is the December 16th low at 0.8303.