- – The Euro gained bullish momentum recently against the British Pound and moved above the 0.8580 resistance.
- – There was a break above a bearish trend line on the 4-hours chart at 0.8580 in EURGBP.
- – Today, the German Factory orders released by the Deutsche Bundesbank posted an increase of 5.2% in Dec 2016, more than the forecast of 0.5%.
German Factory Orders
Today, the FX market was slow, but there were moves in the Euro, especially against the British Pound. On the fundamental front, the German Factory orders figure was released by the Deutsche Bundesbank. The market was aligned for an increase of 0.2% in the shipments, inventories, and new and unfilled orders in Dec 2016, compared with the previous month.
However, the result was better, as there was a rise of 5.2% in Dec 2016. In terms of the yearly change, there was a rise of 8.1% in in Dec 2016, compared with Dec 2015. The report published added that in “December 2016, domestic orders increased by 6.7% and foreign orders by 3.9% on the previous month. New orders from the euro area were up 10.0% on the previous month, new orders from other countries remained unchanged compared to November 2016”.
Overall, the result was positive, which might help the EUR/GBP pair to remain supported above the 0.8600-0.8580 levels.
EUR/GBP Technical Analysis
The Euro this past week struggled against the British Pound and tumbled towards the 0.8470 support area. Later, the EUR/GBP pair started a recovery, and moved above a couple of important resistance levels like 0.8500, 0.8550, 0.8580 and 0.8600.
The pair also managed to break a bearish trend line on the 4-hours chart at 0.8580, which opened the doors for more gains. Furthermore, the pair broke the 100 simple moving average on the 4-hour chart, which is currently acting as a support.
The pair during the upside traded as high as 0.8644, which was just below the 50% Fib retracement level of the last drop from the 0.8851 high to 0.8468 low. So, there is a chance of a minor dip in EUR/GBP before the pair resumes its uptrend. On the downside, the 100 SMA, 0.8600 and 0.8580 levels may act as a support in the near term.Tags: British Pound, EURGBP Technical Analysis, Euro, German Factory Orders