- – The Euro traded lower against the British Pound this week to close below 0.8750.
- – There were several important support breaks on the hourly chart of EURGBP, taking the pair towards 0.8660.
- – Today, the German consumer price index released by the Statistiches Bundesamt Deutschland came in at 0.2% for Oct 2016.
Today during the London session, the German consumer price index was released by the Statistiches Bundesamt Deutschland. The market was aligned for the average price change for all goods and services to increase by 0.2% in Oct 2016, compared with Sep 2016.
The result was in line with the forecast, as there was a rise of 0.2%. The yearly change was also as forecasted, as increased by 0.8% in Oct 2016, compared with Oct 2015. The Harmonised index of consumer prices posted a rise of 0.7% in Oct 2016, compared with Oct 2015.
The report added that the “development of energy prices (–1.4% on October 2015) had a downward effect on the overall rise in prices in October 2016, as had been the case in the preceding months. However, the year-on-year decline in energy prices has continuously slowed since July 2016”. Overall, there was no surprise, so it may push the Euro a few pips higher versus the USD and GBP.
EUR/GBP Technical Analysis
There was a ride by the Euro towards 0.9020 against the British until it found sellers, and moved down. There was a sharp downside move, pushing the EUR/GBP pair below an important trend line support on the hourly chart at 0.8880.
The highlighted trend line break ignited a sharp downside move. The pair once attempted a consolidation pattern, but failed to move higher and broke down once again. There was a close below the 0.8750 support, which may now act as a resistance zone if the pair corrects higher.
On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.9025 high to 0.8662 low. However, there is even a chance that the pair may not correct higher, and break the recent low of 0.8662 for a move towards 0.8640.
Tags: British Pound, EURGBP Technical Analysis, Euro