Recently, EUR/GBP has been trading in a non-volatile bullish trend without any deeper pullbacks. EUR is currently quite stronger than GBP fundamentally despite having mixed economic reports from both the eurozone and the UK. Today, the following data was released in the eurozone. German Retail Sales report was negative at -0.2% instead of the consensus for a 0.4% rise, French Prelim CPI was unchanged at 0.1%, down than the forecast for a 0.2% gain. German Unemployment Change showed a decrease in the unemployment rate to -9k which was expected to be at -14k. EUR CPI Flash Estimate was published at 1.4% which was expected to be at 1.5%. Besides, Core CPI Flash Estimate also showed a lower figure at 0.9% which was expected to be at 1.0%. On the EUR side, only Italian Monthly Unemployment Rate was positive at 11.1% which was expected to rise to 11.6% from 11.5% and EUR Unemployment Rate was positive at 9.3% which was expected to be at 9.4% which previously was at 9.5%. On the GBP side, today Net Lending to Individuals report was published with a weaker figure of 4.3B which was expected to be at 4.5B, M4 Money Supply was positive at 1.2% which was expected to be at 0.4% and Mortgage Approvals did not show any notable change and came in at 65k which was expected to remain at 66k. Today, both the eurozone and the UK presented mixed economic reports. Nevertheless, the eurozone has better reports than the UK which has already been translated in the chart well. Currently, EUR is expected to gain more ground against GBP in the coming days.
Now let us look at the technical chart. The price is currently residing above the 20 EMA dynamic support and it is quite impulsive in bullish pressure. As the price remains above 20 EMA, price is expected to reach 0.8850 resistance level in the coming days. Market is currently in a bullish bias until the price breaks below 0.8500 support level.
