Key Points
- The Euro dived recently against the British Pound and moved below the 0.8500 support.
- There are two bearish trend lines formed on the hourly chart of EURGBP, acting as a resistance near 0.8500.
- Today in the Euro Zone, the German GfK Consumer Confidence was released.
- The result was better than the forecast, as there was a rise from the last reading of 9.9 to 10.2 in Feb 2017.
EURGBP Technical Analysis
The Euro was under a lot of bearish pressure, as it moved below the 8500 support against the British Pound. There was a downtrend initiated from the 0.8580 high, taking the pair down by more than 50 pips.
The EURGBP pair looks like in a solid downtrend with two bearish trend lines on the hourly chart and a resistance near 0.8500. So, any upside move may be limited and face sellers near the trend line at 0.8500.
It looks like the pair may continue to trade lower, and there is a chance of further losses of around 30-40 pips in the short term.
German GfK Consumer Confidence
Today, the Euro Zone saw the release of the German GfK Consumer Confidence, which is a leading index that measures the level of consumer confidence in economic activity. The market was looking for an increase from the last reading of 9.9 to 10.0 in Feb 2017.
However, the result was better, as there was a rise to 10.2. The report stated that the “Consumer confidence is starting 2017 on an extremely positive note. Both economic and income expectations as well as propensity to buy have improved. The overall consumer climate indicator is forecasting 10.2 points for February 2017, following 9.9 points in January”.
Overall, the result was positive, but failed to help EURGBP, and the pair is likely to trade lower towards 0.8460.
