- – The Euro soared higher and moved above the 0.8530 resistance area against the British Pound.
- – The EUR/GBP pair recently broke a major ascending channel at 0.8525 on the hourly chart.
- – Today in the Euro Zone, the German Economic Sentiment for May 2017 published by the ZEW posted a rise from 19.5 to 20.6.
German Economic Sentiment Indicator
In the Euro Zone today, the German Economic Sentiment for May 2017 was published by the ZEW. The market was positioned for the Index to post an increase from 19.5 to 22.0.
However, the result was a bit on the lower side, as the German ZEW Economic Sentiment posted a rise from 19.5 to 20.6. On the other hand, the Current Situation indicator posted a rise from 80.1 to 83.9, more than the forecast of 82.0. The report added that “Taken together, the assessment of the current situation and the economic sentiment show a positive outlook for the German economic growth in the coming six months.”
Overall, the EUR/GBP pair is gaining pace and may continue to post further upsides towards 0.8600 in the near term.
EUR/GBP Technical Analysis
The Euro surged higher and was able to break many hurdles like 0.8500 and 0.8530 against the British Pound. The EURGBP pair after trading towards 0.8400 formed a base and started a solid upside move with good momentum.
The pair climbed and broke the 100 hourly simple moving average at 0.8420 to initiate the trend. It also formed major ascending channel on the hourly chart, and later cleared it at 0.8525 to open the doors for more gains.
The pair recently tested the 0.8565 resistance and faced offers. So, there is a chance of a minor dip towards the broken channel support at 0.8540 and the 23.6% Fib retracement level of the last wave from the 0.8457 low to 0.8566 high. If the correction extends, then the pair may test the 0.8510 support zone.It also represents the 50% Fib retracement level of the last wave from the 0.8457 low to 0.8566 high.
So, the overall trend remains bullish for EUR/GBP and it may head higher towards 0.8580-0.8600.Tags: British Pound, EURGBP Technical Analysis, Euro