Key Points
- There was a sharp rise in the Euro above the 0.9200 resistance against the British Pound.
- There are two important bullish trend lines forming with support at 0.9265 and 0.9240 on the hourly chart of EURGBP.
- Today in the Euro Zone, the German GFK Consumer Confidence report for Sept 2017 was released.
- The outcome was above the forecast, as there was a rise from the last reading of 108 to 10.9.
EURGBP Technical Analysis
The Euro is in a nasty uptrend against the British pound and already traded above the 0.9200 level. The EURGBP pair recently traded above the 0.9250 resistance and the 21 hourly simple moving average.
The pair traded as high as 0.9295 where it faced minor offers. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 0.9247 low to 0.9295 high.
Moreover, there are two important bullish trend lines forming with support at 0.9265 and 0.9240 on the hourly chart of EURGBP. Buying dips in the short term towards 0.9270 can be considered for a break above 0.9300.
German GFK Consumer Confidence
Today in the Euro Zone, the German GFK Consumer Confidence report for Sept 2017 was released. The market was positioned for no change in the index from the last reading of 10.8.
The actual result was above the forecast, as there was a rise from the last reading of 108 to 10.9. The report added that:
The mood among consumers in August shows a positive but non-uniform pattern. Both income expectation and propensity to buy have been able to improve their already outstanding levels, while economic expectation was less impressive after five increases in a row. GfK forecasts an increase in consumer climate for September of 0.1 points in comparison to the previous month to 10.9 points.
Overall, the EURGBP pair is likely to extend gains and remains buy on dips near the 0.9270 level.
