Key Points
- The Euro surged higher against the British Pound to trade near 0.8590 before finding resistance.
- There was a crucial resistance trend line at 0.8555 on the hourly chart of EURGBP, which was broken during the upside.
- Today, the German Import price index for Jan 2017 was released by Deutsche Bundesbank.
- The result was above the market expectation, as there was a rise of 0.9%, more than the forecast of 0.4%.
EURGBP Technical Analysis
The Euro maintained its bullish bias against the British pound with a close above the 0.8540 resistance. The EURGBP pair after testing the 0.8510 support traded higher, and broke a crucial resistance trend line at 0.8555 on the hourly chart.
The pair traded as high as 0.8590 where it found resistance and currently correcting lower. At the moment, the same broken resistance is now acting as a support at 0.8565.
So, there is a chance of an upside move back towards 0.8590, and the pair might even break the stated level to challenge 0.8600.
German Import Price Index
Today in the Euro Zone, the German Import price index for Jan 2017 was released by Deutsche Bundesbank. The market was expecting the change in prices for goods imported by Germany to be 0.4% in Jan 2016, compared with the previous month.
The outcome was above the market expectation, as there was a rise of 0.9%. The yearly change was also above the forecast with an increase of 6%, more than the last 3.5%. In an another release, the Spanish Gross Domestic Product for Q4 2016 released by the National Institute of Statistics posted an increase of 0.7%, in line with the market forecast.
Overall, the Euro has no reason for a downside move, which is why the EURGBP pair may climb above the 0.8590 level.
