- – The Euro gained heavy bids against the British Pound during the past few days and moved above 0.8500.
- – There was a break above 0.8450 and a major bearish trend line on the 4-hours chart of EUR/GBP.
- – The Euro Zone Services sentiment indicator for Feb 2017 released by European Commission posted a rise from the last revised reading of 12.8 to 13.8.
Euro Zone Services Sentiment Index and Consumer Confidence
In the Euro Zone, the Services sentiment index and the consumer confidence for Feb 2017 were released by European Commission. The forecast was no change in the Services sentiment index from 13.5 in Jan 2017.
However, the result was on the higher side, as the Services sentiment index rose from the last revised reading of 12.8 to 13.8. On the other hand, the consumer confidence remained stable at -6.2. Earlier, the Euro Zone’s M3 Money Support report for Jan 2017 was released by the European Central Bank. The result was also positive, as there was an increase of 4.9% in Jan 2017 (YoY), more than the forecast of 4.8%.
Overall, the Euro has few reasons to decline, which is why the EUR/GBP pair remains buy on dips near 0.8475.
EUR/GBP Technical Analysis
The Euro had a decent upside run against the British Pound during the past few days, as it moved above 0.8450 and 0.8500. During the upside move, the EUR/GBP pair managed to clear 0.8450 and a major bearish trend line on the 4-hours chart. The pair traded as high as 0.8533 where it found resistance, and started a downside move.
The highlighted resistance area near 0.8530 is important, since it acted as a pivot area earlier. So, there is a chance of a short-term correction. An initial support is around the 23.6% Fib retracement level of the last wave from the 0.8421 low to 0.8533 high.
However, the most important support on the downside is near 0.8464, as it coincides with the 100 simple moving average (H4). It also overlaps with the 50% Fib retracement level of the last wave from the 0.8421 low to 0.8533 high. Overall, if the pair corrects lower, the levels like 0.8480 and 0.8460 might act as a strong buy zone.Tags: British Pound, EURGBP Technical Analysis, Euro, Euro Zone Consumer Confidence, Euro Zone Services Sentiment Index