EUR/GBP has been quite volatile recently having a strong bullish rejection that is creating impulsive bearish pressure today. EUR has been recently struggling amid downbeat economic reports which encouraged GBP to gain further momentum which is expected to continue further. Recently, German Import Prices report was published with a decrease to -0.6% from the previous value of 0.5% which was expected to be at -0.3%, Spanish Flash CPI failed to meet the expectation of an increase to 1.5% from the previous value of 1.1% whereas resulted at 1.2%, M3 Money Supply contracted to 4.2% from the previous value of 4.5% which was expected to increase to 4.6%, and Private Loans was published unchanged at 2.9% which was expected to grow to 3.0%. Today, German GfK Consumer Climate report is going to be published which is expected to show a slight decrease to 10.7 from the previous figure of 10.8. On the other hand, today UK CBI Realized Sales report is going to be published which is also expected to fall to 7 from the previous figure of 8. As for the current scenario, ahead of the Current Account and Final GDP report from the UK this week, growing momentum for GBP is a good sign whereas positive data from the UK today will help to sustain the bearish momentum in the pair. To sum up, GBP is expected to sustain the bearish momentum in the pair and push much lower in the coming days.
Now let us look at the technical view. The price is currently residing below 0.8750 price area which has engulfed the previous bullish pressure already and if the bearish pressure sustains throughout the day and closes with a daily candle below 0.8750 area then further bearish pressure towards 0.8650 price area is expected. As the price remains below 0.88 price area, bearish pressure is expected to continue in this pair.
