Key Points
- The Euro remained in a downtrend against the British Pound and traded below 0.8480 before starting a recovery.
- The EURGBP pair moved higher, and broke a bearish trend line at 0.8475 on the hourly chart.
- Recently in the UK, RICS Housing Price Balance survey for March 2017 was released by the Royal Institution of Chartered Surveyors.
- The outcome was in line with the forecast, as the RICS Housing Price Balance increased by 22%, compared with the last revised 22%.
EURGBP Technical Analysis
The Euro moved down this past week and traded below 0.8480 against the British Pound. The EURGBP pair traded as low as 0.8461 from where it recovered and moved above the 23.6% Fib retracement level of the last decline from the 0.8546 high to 0.8461 low.
The pair also broke a bearish trend line at 0.8475 on the hourly chart, but was not able to retain momentum above the 0.8490-0.8500 levels.
The pair has to break 0.8500 or the 50% Fib retracement level of the last decline from the 0.8546 high to 0.8461 low for a sustained upside move.
UK’s RICS Housing Price Balance
The UK saw the release of the RICS Housing Price Balance survey for March 2017 by the Royal Institution of Chartered Surveyors. The forecast was lined up for an increase of 22% in March 2017, compared with the last 24%.
The result was in line with the forecast, as the RICS Housing Price Balance increased by 22%. However, the last reading was revised down from 24% to 22%. The report added that “In March, 3% more respondents saw a fall in agreed sales rather than a rise; that said, sales did rise relatively firmly in Wales, Scotland and Northern Ireland. Going forward, the national near-term sales outlook also appears somewhat subdued”.
Overall, the EURGBP pair looks to extend gains above 0.8480, but have to break the 0.8500 resistance for momentum.
