The EURGBP is trading lower today on the recent economic projections for the Eurozone by the Bundesbank. In its monthly economic report, the Bundesbank (Germany’s Central Bank) said that economic slowdown in Germany could extend into the fourth quarter of 2019, capping off a miserable year for Europe’s number 1 economy.
However, the bank was more optimistic about the future, saying that there was “no reason to fear that Germany would slide into recession.
The EURGBP traded lower on these comments, trading at 0.85328 or 28 pips lower than intraday highs.
Bearish sentiment resumed on this pair after the Bundesbank’s comments.
The daily chart reveals that the EURGBP is challenging the lower border of the descending channel pattern. This is the expected continuation move from the symmetrical triangle. However, price needs a decisive close below the channel to continue any downside march towards 0.8497, the previous low on march 27 and May 4.
On the flip side, price would need to make a remarkable recovery above 0.8700 to continue any upside movement. This could be a difficult proposition in the face of bearish momentum brought on by a British Pound that is finding strength from Brexit headlines and a weaker Euro.More content