EUR/GBP has recently bounced off the 0.86 price area breaching above 0.87 with a daily close. Currently, the price is residing inside the support area of 0.87-0.8750 from where it is currently expected to push higher towards 0.8950 resistance area in the coming days. The recent break below 0.87 has proved to be a false break downward which indicates the strength of the bulls in the market. Today there are no economic reports or events on the EUR side to impact the market momentum, but tomorrow the Minimum Bid Rate report is going to be published which is expected to be unchanged at 0.00%. At the same time, the ECB Press Conference is also expected to be neutral in nature. On the GBP side, the economic reports have been quite positive in nature which helped the currency gain certain momentum but it was not enough to have an impulsive counter in the strong bullish momentum. Today there are no economic reports or events on the GBP side to impact the market momentum but tomorrow, ahead of the ECB Minimum Bid Rate report, the British High Street Lending report will be delievered which is expected to decrease to 37.1k from the previous figure of 38.1k. Besides, the CBI Realized Sales is expected to decrease in deficit to -3 from the previous figure of -8. As of the current scenario, GBP economic reports expectations are quite dovish in nature whereas high impact economic reports and events on EUR are expected to have a better overview for the upcoming EUR gains in the pair. To sum up, EUR is expected to gain further momentum in the pair against GBP in the coming days.
Now let us look at the technical view. The price is currently residing at the edge of breaking above 0.8750 area which is more likely as of the recent false break below 0.87 with an impulsive pressure could not sustain the bearish momentum. As of the Bullish Continuation Divergence in place, the bullish momentum is expected to continue further for a certain period. The price is being supported by the dynamic level of 20 EMA currently and a daily close above 0.8750 will lead to strong impulsive momentum towards 0.8950 in the coming days. As the price remains above 0.87 with a daily close, further bullish momentum is expected in this pair.
