Key Points
- Euro after an impressive run against the British Pound found sellers near 0.7994, and started to trade down.
- There was a bullish trend line formed on the 4-hours chart of the EURGBP pair, which was broken to ignite a downside move.
- The pair is now below the 100, 200 and 50 simple moving averages on H4 chart, which is a bearish sign.
- In the Euro Zone, the Portugal current account, released by Statistics Portugal posted a trade deficit of €-0.317B, more than the last time.
Technical Analysis
The Euro was seen in a downtrend against the British Pound during the past few days, as it fell by more than 200 pips. There was a bullish trend line formed on the 4-hours chart of the EURGBP pair, which was broken during the recent slide.
Currently, the pair is trading near the 76.4% Fib retracement level of the last wave from the 0.7573 low to 0.7994 high. So, there is a chance of a minor bounce, but it may find sellers on the upside.
If you are looking to sell, then you can keep an eye on the 200 SMA (H4 chart).
Portugal Current Account
There was hardly any major release in the Euro Zone today. One low risk event was the Portugal current account, which is a net flow of current transactions, including goods, services and interest payments into and out of Portugal was reported by Statistics Portugal.
The outcome was not encouraging, as the trade deficit was €-0.317B in April 2015, more than the last time. The Euro was not affected much, as a lot is going on regarding Brexit. The market is waiting patiently for the outcome, then there may be an increase in volatility.
In short, the EURGBP may remain under a bearish pressure, as long as it is below the 100 SMA (4-hours chart).
