EUR/GBP Forecast – Euro Eyes Upside Break above 0.9220 Vs British Pound
- – The Euro after trading as low as 0.9149 against the British Pound started an upside move.
- – The EUR/GBP pair is currently attempting an upside break above a major bearish trend line at 0.9215 on the hourly chart.
- – Today in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales for August 2017 was released.
- – The outcome was above the forecast, as there was a rise in sales by 1.3% (YoY).
BRC Like-For-Like Retail Sales
Today in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales for August 2017 was released. The market was positioned for an increase in sales by around 1% compared with the same month a year ago.
The actual result was above the forecast, as there was a rise in sales by 1.3%, which was even higher by the last reading of 0.9%. The Total Retail Sales were up by 2.4% in August 2017 compared with the same month a year ago. Commenting on the sales figures, the Chief Executive, BRC, Helen Dickinson OBE, stated:
August provided a welcome pick-up in retail sales across channels, with Non-Food returning to growth as shoppers’ attentions turned to homewares, autumn clothing ranges and the new school term.
Overall, the EUR/GBP pair remains in the bullish zone and looking to gain momentum for a rise above 0.9220 in the near term.
EUR/GBP Technical Analysis
The Euro after trading a few pips above the 0.9300 handle against the British Pound started a correction. The EUR/GBP pair traded as low as 0.9149 and then started moving higher. It has already traded above the 0.9180 resistance and the 100 hourly simple moving average.
There was even a break above the 23.6% Fib retracement level of the last decline from the 0.9306 high to 0.9149 low. On the upside, there is a major bearish trend line at 0.9215 on the hourly chart, which is acting as a barrier for buyers.
The pair needs a close above the trend line resistance at 0.9215 and the 50% Fib retracement level of the last decline from the 0.9306 high to 0.9149 low at 0.9227 to gain traction.
Therefore, a proper close above 0.9220-0.9230 would open the doors for further gains may be towards 0.9300 in the near term.
