Key Points
- The Euro made a nice upside move and traded above the 0.9000 handle against the British Pound.
- The EURGBP pair may correct lower since it broke a short term consolidation pattern on the hourly chart at 0.9040.
- Today in the Euro Zone, the Italian Retail Sales for June 2017 was released by the National Institute of Statistics.
- The outcome was above the forecast, as there was a rise of 0.6% in sales (MoM).
EURGBP Technical Analysis
The Euro surged higher recently against the British Pound and broke an important hurdle near 0.9000. The EURGBP pair is now comfortably placed above the 21 hourly simple moving average and traded as high as 0.9048 recently.
The pair is currently correcting lower, and recently broke a short term consolidation pattern on the hourly chart at 0.9040.
On the downside, an initial support is near the 23.6% Fib retracement level of the last wave from the 0.8924 low to 0.9048 high. Any further downsides might be limited by 0.9000, which is the 38.2% Fib retracement level of the last wave from the 0.8924 low to 0.9048 high.
Italian Retail Sales
Today in the Euro Zone, the Italian Retail Sales for June 2017 was released by the National Institute of Statistics. The market was positioned for a minor rise of 0.1% in sales compared with the previous month.
The actual result was above the forecast, as there was a rise of 0.6% in sales. In terms of the yearly change, there was a rise of 1.5%, more than the last 1%. The report added that:
The value of retail trade in June 2017 increased by 0.6% from the previous month (+0.9% for food goods and +0.5% for non-food goods) and increased by 1.5% compared to June 2016 (+1.7% for food goods and +1.6% for non-food goods).
Overall, the EURGBP pair remains in an uptrend and any correction towards 0.9000 could find buyers.
