EURGBP is off to a bullish start to today’s trading. The currency pair is currently trading higher at 0.9114 from where it opened at 0.9096. Can the German Ifo report push EURGBP higher?
Due later at 9:00 am GMT, the report is expected to print higher at 89.2 for July from its 86.2 reading in June. This suggests that manufacturers, builders, wholesalers, retailers, and business people in the services industry have grown more confident about economic conditions. With that said, a higher-than-expected reading could be bullish for EURGBP. On the other hand, a disappointing reading could weigh down on the currency pair. This is because a lower-than-expected reading could raise concerns about the German economy.
There are no reports scheduled from the UK which means that EURGBP will likely take its cue from this report.
Technical Analysis
On the 4-hour time frame, it can be seen that EURGBP has been making lower highs and higher lows since July 22. Because this follows after a sharp rally, it would seem that a bullish pennant chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is widely considered as a bullish continuation pattern. A strong close above today’s high at 0.9123 could mean that EURGBP may soon rally to its June 29 highs at 0.9174.
On the other hand, a strong close below today’s low at 0.9094 may indicate that there are still sellers left in the market that could push the currency pair lower. EURGBP could then fall to 0.9035 where it may test the 100 SMA and 200 SMA for support.
EURGBP, 4-Hour Chart
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