Key Points
- The Euro declined recently against the British Pound, but remains supported
- There is a bullish trend line formed on the hourly chart of the EURGBP pair, which is protecting losses.
- Today in the UK, the M4 Money Supply report was released by the Bank of England.
- The result was positive, as there was a rise of 0.9% in August 2016, more than the forecast of 0.8%.
EURGBP Technical Analysis
The Euro collapsed recently against the British Pound and traded as low as 0.8590. There was a major support around the stated level, and the Euro bulls managed to protect the downside. There is a bullish trend line on the hourly chart of EURGBP, which prevented the downside move.
The EURGBP pair is currently recovering, but facing sellers near a bearish trend line on the same chart.
Moreover, the 21 hourly simple moving average is also acting as a hurdle for more gains. We need a clear break either higher or lower for the next move.
UK M4 Money Supply
Today in the UK, the M4 Money is widely referred as “broad money” or simply “money supply”, which measures all the sterling in circulation, encompassing notes and coins as well as money held in bank accounts was released by the Bank of England.
The market was expecting a rise of 0.8% in August 2016, compared with the previous month. The result was above the forecast, as there was a rise of 0.9%. The report stated that “M4 excluding intermediate other financial corporations (OFCs). M4 ex increased by £2.9 billion in August, compared to the average monthly increase of £14.1 billion over the previous six months. The three-month annualised and twelve-month growth rates were 10.9% and 7.3% respectively“.
Overall, it looks like it may not be easy for the Euro bulls to break the resistance and move higher versus the British Pound.
