EURGBP rebound today after three consecutive days of losses supported by comments from Eurogroup Chairman, Mario Centeno that he does not rule out the use of Eurobonds as a response to the coronavirus crisis. French Finance Minister Bruno Le Maire said that almost 60% of the French industry has restarted, while the relief package to the French economy raised to 110 billion euros.
On the data front, France CPI came in at 0.1% above the forecasts of 0% in March; the yearly CPI reading came in at 0.8% also above the forecasts of 0.7%. The retail sales dropped 24% in March compared to February sales.
Yesterday the IMF announced the growth projections for 2020; for Germany sees a 7.5% contraction, for France -7.2% and for Italy -9.1%. IMF forecasts a contraction of -6.5% in the UK for 2020.
EURGBP is 0.48% higher at 0.8736, in an attempt to regain the critical 50-day moving average. The pairs correction from March highs stalled yesterday at 0.8680. The technical outlook is neutral for the pair as it hovers around the 50-day moving average, but below the 200-day moving average.
On the upside, the initial resistance stands at 0.8745 the daily top. A break above might challenge the next hurdle at 0.8788 the high from April 13. A convincingly break above that resistance might test the next hurdle at 0.8912 the high from April 8.
On the flip side, first support for EURGBP pair stands at 0.8691 the daily low. A close below might test the next support zone at 0.8653 the low from March 9. More bids would emerge at 0.8607 the 100-day moving average.