Key Points
- The Euro remains in an uptrend vs the British Pound with a close above the 0.8680 resistance.
- There is a major bullish trend line with support at 0.8700 formed on the hourly chart of EURGBP.
- Recently in the Euro Zone, the Spanish Retail Sales report for April 2017 was released by the National Institute of Statistics.
- The outcome was better than the forecast, as there was a rise of 1.8% in April 2017 (YoY), more than the last +1.3% (revised).
EURGBP Technical Analysis
The Euro climbed higher recently, and broke the 0.8650 and 0.8680 resistance levels vs the British Pound. The EURGBP pair traded positively and with a close above 0.8700 tested the 0.8750 resistance where it faced offers.
It moved down, and currently trading near a major bullish trend line with support at 0.8700 on the hourly chart. The 21 hourly simple moving average and the 38.2% Fib retracement level of the last wave from the 0.8602 low to 0.8751 high is also around 0.8695.
So, we can say there is a major support at 0.8700-0.8695. As long as the pair is above these, it may rise back towards 0.8750 or 0.8780.
Spanish Retail Sales
Recently in the Euro Zone, the Spanish Retail Sales report for April 2017 was released by the National Institute of Statistics. The market was positioned for the Retail Sales to rise by around 1.5% in April 2017, compared with the same month a year ago.
The result was better than the forecast, as there was a rise of 1.8% in April 2017 (YoY), more than the last +1.3% (revised). The report added that “The monthly variation of the General Retail Trade Index (ICM) at constant prices between the months of April March, eliminating the seasonal and calendar effects, is the 0.6%. This rate is two tenths lower to the last month“.
Overall, the EURGBP pair remains supported above 0.8700, and may soon trade higher in the near term.
