Key Points
- The Euro managed to pop higher after trading towards 0.8380 against the British Pound.
- The EURGBP pair recently broke a few crucial bearish trend lines with resistance at 0.8400 on the hourly chart.
- In the Euro Zone today, the Germany consumer price index for April 2017 was released by the Statistisches Bundesamt Deutschland.
- The result was in line with the forecast, as the Germany consumer price index remained flat at 0% (MoM).
EURGBP Technical Analysis
The Euro after a nasty decline towards 0.8380 against the British Pound found support and started an upside move. The EURGBP pair broke many hurdles recently like the 21 hourly simple moving average and a few crucial bearish trend lines with resistance at 0.8400 on the hourly chart.
The pair moved above the 38.2% Fib retracement level of the last decline from the 0.8509 high to 0.8382 low.
At the moment, the pair is struggling to break 0.8450 and the 50% Fib retracement level of the last decline from the 0.8509 high to 0.8382 low. So, there is a chance of a minor dip towards 0.8420-30 before the pair resumes its uptrend.
Germany Consumer Price Index
Recently in Euro Zone today, the Germany consumer price index for April 2017 was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for an increase of 2% in the CPI in April 2017, compared with the same month a year ago.
The outcome was in line with the forecast, as the CPI came in at 2%. In terms of the monthly change, the CPI was flat at 0%. The report added that the “month-on-month price increase (+5.1%) was at the level of March 2017. Prices of mineral oil products, in particular, went up considerably (+14.3%, of which heating oil: +30.1% and motor fuels: +10.6%)”.
Overall, the EURGBP pair may continue to extend gains, and any dips towards 0.8400 can be considered as a buying opportunity.
