Key Points
- The Euro declined recently and traded below the 0.8880 support against the British Pound.
- There is a crucial bearish trend line forming with resistance at 0.8930 on the hourly chart of EURGBP.
- Today in the Euro Zone, the German Retail Sales figure for Sep 2017 was released by the Statistisches Bundesamt Deutschland.
- The outcome was below the forecast of +0.7% as there was a rise in the Retail Sales by 0.5% (MoM).
EURGBP Technical Analysis
The Euro started a downside move from the 0.9020 swing high against the British Pound. The EURGBP pair declined, broke the 0.8880 and 0.8850 support levels and settled below the 21 hourly simple moving average.
The pair recently traded as low as 0.8826 and is currently consolidating in a tight range. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.8901 high to 0.8826 low.
However, the most important resistance is near the 0.8880 level, which was a support earlier. Above 0.8880, there is a crucial bearish trend line forming with resistance at 0.8930 on the hourly chart.
German Retail Sales
Recently in the Euro Zone, the German Retail Sales figure for Sep 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for an increase in the Retail Sales by 0.7% compared with the previous month.
The actual result was below the forecast of +0.7% as there was a rise in the Retail Sales by 0.5%. Looking at the yearly change, there was a rise of 4.1% in the Retail Sales, compared with the last rise of 3% (revised) and more than the +3% forecast. The report added that:
Compared with the previous year, turnover in retail trade was in the first nine months of 2017 in real terms 3.0% and in nominal terms 4.8% larger than in in the corresponding period of the previous year.
Overall, the EURGBP pair might continue to decline and remains sell on rallies near 0.8860-80.
