Key Points
- The Euro remains above the 0.8780 support area against the British Pound and looking for more gains.
- There is a contracting triangle pattern with resistance at 0.8815 forming on the hourly chart of EURGBP.
- Today, the UK’s Retail Sales figure for May 2017 was released by the National Statistics.
- The outcome was below the forecast of -0.8%, as the Retail Sales declined by 1.2% (MoM).
EURGBP Technical Analysis
The Euro was well bid recently and moved above the 0.8750 resistance against the British Pound. Later, the EURGBP pair moved above the 0.8780 resistance, which is currently acting as a support area in the short term.
The pair is currently struggling to break the 0.8800 resistance and 21 hourly simple moving average. Moreover, there is a contracting triangle pattern with resistance at 0.8815 forming on the hourly chart.
On the downside, the triangle support is at 0.8780, which is also near the 23.6% Fib retracement level of the last wave from the 0.8649 low to 0.8866 high.
UK Retail Sales
Recently in the UK, the Retail Sales figure for May 2017 was released by the National Statistics. The market was positioned for a decline of 0.8% in the Retail Sales in May 2017, compared with the previous month.
The result was below the forecast of –0.8%, as the Producer and Import Prices declined by 1.2%. In terms of the yearly change, there was a rise of 0.9% in the Retail Sales, which was also less than the forecast of +1.7%. The report added that “Non-food stores were the main contributing factors to this slowdown with an annual fall of 1.2% and predominantly food stores saw the lowest annual growth since July 2013 at 0.1%”.
Overall, the EURGBP pair is likely to gain pace and move above the 0.8815 resistance for a move towards 0.8850.
