EUR/GBP bearish impulsive movement came to a pause after reaching the support of 0.8330. Since yesterday, EUR has somehow managed to protect the support of 0.8330 with some bullish pressure. Today, mixed economic reports were released in the eurozone. German PPI was decreased to 0.0% which was expected to be at 0.2%, EUR Consumer Confidence was a bit positive at -4 which was expected to be unchanged at -5, and Spanish 10-y Bond Auction did not show much change and came in at 1.68|1.5 which previously was at 1.61|1.6. On the GBP side, today we have Bank of England Governor Carney's speech on further short-term interest rates and monetary policy of the UK. During the speeches, the market is expected to be very volatile and any positive statement in favor of GBP may lead to a downward movement in this pair.
Now let us look at the EUR/GBP pair from the technical viwe. The price has broken below the 200 EMA support with an impulsive bearish move and now is above a strong support level of 0.8330. Currently, the price is hovering between 0.8330-0.8420 support area. If the price breaks above 0.8420 with daily close, then we will consider going short with a target towards 0.8760. On the other hand, if the price breaks below the lower support of 0.8330 with a daily close, then we will assume a lower target towards 0.80. Amid BOE Governor Carney speech, the market is expected to be quite volatile and a daily close is very much needed to predict a further direction of the pair.
