EURGBP – Can Euro Break Past 0.9150 Vs British Pound?

Key Points

  • The Euro remains elevated above the 0.9100 support against the British Pound.
  • There is a connecting bullish trend line with support at 0.9120 forming on the hourly chart of EURGBP.
  • Recently in the UK, the Rightmove House Price Index for July 2017 was published.
  • The outcome was below the forecast, as there was a decline of 0.9% (MoM).

EURGBP Technical Analysis

The Euro remains gained heavily recently and traded above 0.9000 and 0.9100 against the British Pound. The EURGBP recently traded towards 0.9140-0.9150 where it faced solid offers and moved down.

The pair is currently trading below the 23.6% Fib retracement level of the last wave from the 0.9090 low to 0.9149 high. On the downside, there is a connecting bullish trend line with support at 0.9120 forming on the hourly chart of EURGBP.

The pair might spike down, but likely to find support near the 21 hourly simple moving average and the 61.8% Fib retracement level of the last wave from the 0.9090 low to 0.9149 high. Buying dips towards 0.9100 may be considered in the short term with a tight stop.

UK’s Rightmove House Price Index

Today in the UK, the Rightmove House Price Index for July 2017 was published. The market was positioned for an increase of 0.1% in the index compared with the previous month.

The actual result was below the forecast, as there was a decline of 0.9%. It was also below the last +0.1%. The yearly change came in at +3.1%, better than the last +2.8% (YoY). The report added that:

Holiday season casts its usual shadow with price of property coming to market falling by 0.9% (-£2,758) this month. Climate of stretched affordability and clouded political outlook continue to chill the annual rate of increase to a national average of just +3.1%.

Overall, the EURGBP pair might attempt a bounce back, but a break above 0.9150 won’t be easy.

Original Article