EUR/GBP is currently residing inside a corrective structure between 0.8420 and 0.8760. Today EUR had a neutral day; ECB President Draghi spoke about upcoming monetary policy and the BREXIT effect which signaled positive statements on the favor of EUR. German Factory Orders report was also published today at 3.4% which was forecasted to be at 3.5% and Retail PMI was published at 49.5 which previously was at 49.9. On the EUR side only slight differences were observed in the economic reports but Draghi's speech made the market quite volatile after his speech. On the other hand, GBP had a negative Economic report of Housing Equity Withdrawal at -10.2B which was expected to be at -9.5B. After the negative GBP news was published, EUR had a greater push in the market against GBP and currently on the way to dominate the GBP for the rest of the day.
Now let us look at the technical view, the price is currently showing a bearish rejection in the daily candle, whereas the dynamic support of 200 EMA seems to be backing up the price for an upside move. As of EUR is gaining strength over GBP and above 200 EMA, it is expected that the price will hit the resistance 0.8760. As the price remains above the 200 EMA we will be in bullish bias and only a daily close below the 200 EMA will negate our current bias.
from www.instaforex.com
