Key Points
- The Euro traded lower and moved below the 0.8980 support area against the British Pound.
- There are two bearish trend lines forming with resistance near 0.8836 on the hourly chart of EURGBP.
- Recently in the Euro Zone, the Consumer Confidence (Prelim) for Sep 2017 was released by the European Commission.
- The outcome was above the forecast of -1.5, as there was a rise in the index from -1.5 to -1.2.
EURGBP Technical Analysis
The Euro started a nasty downtrend and broke the 0.8980 support area against the British Pound. The EURGBP pair faced a lot of selling interest lately and moved below the 0.8900 handle and the 21 hourly simple moving average.
A low was formed near 0.8774 from where a recovery was initiated. The pair is currently attempting a recovery and testing one of the two bearish trend lines with resistance near 0.8836 on the hourly chart. Moreover, the 23.6% Fib retracement level of the last decline from the 0.9038 high to 0.8774 low is also near 0.8836.
It seems like selling near the 0.8835 level and the 21 hourly simple moving average can be considered in the short term with a stop above the 0.8860 level.
Euro Zone Consumer Confidence
Recently in the Euro Zone, the Consumer Confidence (Prelim) for Sep 2017 was released by the European Commission. The market was positioned for no change from the last reading of -1.5.
The actual result was above the forecast of -1.5, as there was a rise in the index from -1.5 to -1.2. The report added that:
In September 2017, the DG ECFIN flash estimate of the consumer confidence indicator 2 increased in the EU (+0.8 to -1.5) and, to a lesser extent, in the euro area (+0.3 points to -1.2) compared to August.
Overall, the EURGBP pair might correct a few pips from the current levels, but upsides remain capped near 0.8835-40.
