EUR/GBP has been residing inside the corrective range between 0.8750 to 0.9030 area which recently is showing a bearish slope before breaking out of it. GBP has been quite positive with the economic reports after the Rate Hike which made the currency a bit stronger than EUR having mixed economic reports recently. Today EUR French Industrial Production report is going to be published which is expecting an increase to 0.6% from the previous negative value of -0.3%, French Prelim Private Payrolls report is expected to show a slight decrease to 0.3% from the previous value of 0.4% and Italian Industrial Production report is expected to be negative at -0.3% which previously was at 1.2%. On the GBP side, today, the Manufacturing Production report is going to be published which is expected to show a decrease to 0.3% from the previous value of 0.4%, the Goods Trade Balance report is expected to show less deficit at -12.9B from the previous figure of -14.2B, Construction Output is expected to be negative at -0.6% from the previous positive value of 0.6% and the Industrial Production report is expected to increase to 0.3% from the previous value of 0.2%. As of the current scenario, economic reports of both currencies of the pair are expected to have mixed results which might lead to further correction and indecision, but any better than expected result of GBP can lead to further bearish pressure in the pair dominating the EUR in the coming days. To sum up, GBP is expected to have an upper hand over EUR.
Now let us look at the technical view, price has been quite corrective and bullish recently which is being held by the dynamic level of 20 EMA and trendline resistance. As the price remains below 0.8950 mid-range resistance area, it is expected that the bearish pressure will continue with the target towards 0.8650 and later towards 0.8400 support area.
