- – The Euro after failing near the 0.8788 level against the British Pound moved down.
- – The EUR/GBP pair is currently trading near a bullish trend line with support at 0.8650 on the 4-hours chart.
- – The German Producer Price Index released by the Statistisches Bundesamt Deutschland posted a rise of 0.2% in Feb 2017, compared with the previous month.
German Producer Price Index
Today in the Euro Zone, the German Producer Price Index for Feb 2017 was released by the Statistisches Bundesamt Deutschland. The market was expecting the average changes in prices in the German primary markets to increase by +0.2% in Feb 2017, compared with the previous month.
The outcome in line with the forecast, as the German Producer Price Index increased 0.2% in Feb 2017. In terms of the yearly change, there was a rise of 3.1% in Feb 2017, compared with Feb 2016. It was more than the forecast of +2.9%, and more than the last +2.4%. The report mentioned that “Energy prices increased by 5.4%, though prices of the different energy carriers diverged. Prices of petroleum products increased by 22.7%, whereas prices of natural gas (distribution) decreased by 7.5%’.
Overall, the result was better for the Euro, which may help EUR/GBP in gaining bids near 0.8650 in the short term.
EUR/GBP Technical Analysis
The British Pound struggled a lot against the Euro, as EUR/GBP climbed above a couple of important resistances like 0.8600 and 0.8700. The pair traded towards 0.8800, but failed to break the 0.8788 level. There were two attempts to clear 0.8788, but the Euro buyers failed to surpass it.
As a result, there was a downside move, and the pair moved below 0.8750. Later, it broke a bullish trend line on the 4-hours chart at 0.8720. And, finally there was a move below the 23.6% Fib retracement level of the last wave from the 0.8402 low to 0.8788 high.
At the moment, the pair is trading near a bullish trend line with support at 0.8650 on the 4-hours chart. The same trend line is also above the 100 hourly simple moving average at 0.8640. So, we can say that the pair is trading above a major support at 0.8650-0.8640. It might bounce or break it for more losses.Tags: British Pound, EURGBP Technical Analysis, Euro, German Producer Price Index