Key Points
- The Euro after moving towards 0.8860 against the British Pound found support and moved higher.
- There was a bearish trend line formed on the hourly chart of EURGBP, which was broken, but the pair faces another bearish trend line on the upside.
- Today in the Euro Zone, the German Factory orders figure was released by the Deutsche Bundesbank.
- The result was on the lower side, as the orders declined by 0.6% in Sep 2016, compared with the previous month.
EURGBP Technical Analysis
There was a downside move in the Euro from 0.9040 to 0.8860 against the British Pound, but later the EURGBP pair found support. The pair started moving higher, and then later broke a bearish trend line on the hourly chart.
However, there is another bearish trend line on the upside waiting to act as a barrier for the Euro bulls.
Moreover, the 38.2% Fib retracement level of the last drop from the 0.9044 high to 0.8859 low is also around the same trend line to act as a resistance.
German Factory Orders
Today in the Euro Zone, the Factory orders, which is an indicator that includes shipments, inventories, and new and unfilled orders was released by the Deutsche Bundesbank.
The market was expecting a rise of 0.3% in Sep 2016, compared with the previous month. However, the result was on the lower side, as there was a decline of 0.6%. The last reading was also revised down from 1% to 0.9%. When we look at the yearly change, there was an increase of 2.6% in Sep 2016, which was a bit higher compared with the last rise of 2%. The last reading was also revised down from 2.1% to 2%.
Overall, the Euro may move a bit higher from the current levels, but it won’t be easy for the EURGBP pair to continue gaining momentum.
