The Euro is currently recovering against the British Pound, and EURGBP is attempting to break a major resistance near 0.8500-10.
EURGBP Weekly Analysis – Can Euro to Pound Break This?
· The Euro after trading as low as 0.8449 against the British Pound started recovering.
· The EURGBP pair is currently attempting to break a major resistance area near 0.8500-10 on the hourly chart.
· The Euro Zone PMI service released by the Markit Economics posted a rise from the last reading of 53.1 to 53.7 in Dec 2016.
EURGBP Technical Analysis
The Euro was seen struggling earlier this week against the British Pound, as it fell towards 0.8450. The EURGBP pair later found support and started moving higher. The pair climbed above the 23.6% Fib retracement level of the last drop from the 0.8605 high to 0.8449 low.
At this moment, the pair is facing a major resistance near 0.8500-10. The stated levels coincide with two bearish trend line formed on the hourly chart of EURGBP. Moreover, the 38.2% Fib retracement level of the last drop from the 0.8605 high to 0.8449 low is also positioned.
So, we can say a break above the highlighted resistance area is needed for more gains. If there is a break above 0.8510, we can enter with a buy stop, else we can stay bearish on EURGBP.
Trade Idea – If you are looking to enter a buy trade, then consider it with a break and close above the highlighted resistance area at 0.8510 with a stop of around 15-20 pips.
Today in the Euro Zone, the PMI service was released by the Markit Economics. The market was expecting no change from the last reading of 53.1.
The result was positive, as there was a rise to 53.7. The report that the “Economic expansions were signalled across the ‘big-four’ nations. The fastest growth was seen in Spain (six-month high) followed closely by Germany (five-month high). The pace of increase in France accelerated to a one-and-a-half year record, but remained below the euro area average. Italy was the only one among the largest nations to see slower growth“.
Overall, there is a chance that the EURGBP may break the 0.8500-10 resistance area and move further higher in the near term.