Key Points
- The Euro after trading close to the 0.8720 support against the British Pound started moving higher.
- There are two bullish trend lines with supports at 0.8800 and 0.8780 formed on the hourly chart of EURGBP.
- Today in the Euro Zone, the French Business Climate Index for June 2017 was released by INSEE.
- The outcome was below the forecast, as the Business Climate Index declined from 109 to 108.
EURGBP Technical Analysis
The Euro declined earlier this week towards 0.8720 against the British Pound where it found support. The EURGBP pair started moving higher and traded above the 0.8750 resistance and the 21 hourly simple moving average.
The pair is currently following two bullish trend lines with supports at 0.8800 and 0.8780 on the hourly chart. It has already moved above the 50% Fib retracement level of the last decline from the 0.8846 high to 0.8771 low.
So, there are chances of further gains in EURGBP towards the next resistance at 0.8840. On the downside, the 21 hourly simple moving average and the trend line at 0.8805 are major supports for buyers.
Franc Business Climate Index
Today in the Euro Zone, the French Business Climate Index for June 2017 was released by INSEE. The forecast was lined up for no change from the last reading of 109.
However, the result was below the forecast, as the Business Climate Index declined from 109 to 108. The report added that “In June 2017, the balance of industrialists’ opinion on their past activity has declined further, that on personal production expectations has also fell back. However, both remain significantly above their normal level“.
Overall, the EURGBP bullish trend is intact, and there are chances of a move towards the 0.8840 resistance in the near term.
