EUR/GBP Forecast – Euro Eyes Major Correction Vs British Pound

EUR/GBP Forecast – Euro Eyes Major Correction Vs British Pound

  • – The Euro after a nasty ride towards 0.9300-0.9310 made a top against the British Pound.
  • – The EUR/GBP pair broke a major connecting bullish trend line with support at 0.9095 on the hourly chart.
  • – Today in the Euro Zone, the French Nonfarm Payrolls for Q2 2017 report was released by INSEE.
  • – The outcome was below the forecast of +0.5%, as there was a rise in payrolls by 0.4% (QoQ).

 

French Nonfarm Payrolls

Today in the Euro Zone, the French Nonfarm Payrolls for Q2 2017 report was released by INSEE. The market was positioned for an increase in the Nonfarm Payrolls by 0.5% compared with the previous quarter.

 

The actual result was below the forecast of +0.5%, as there was a rise in payrolls by 0.4%. Looking at the net payroll job creation, there was an increase of 0.3% to 81,400, which makes it the eleventh consecutive quarter of growth. The report added that:

 

The payroll employment increased by 76,800 in the private sector and by 4,600 in the public sector. Year on year, it rose by 303,500 net jobs (that is +1.2%): 276,300 jobs were created in the private sector and 27,200 jobs in the public service.

 

Overall, the EUR/GBP pair might continue to decline and could even break the 0.9060 support to test the 0.9040 level.

 

EUR/GBP Technical Analysis

The Euro was in a super uptrend and traded above the 0.9280 resistance against the British Pound. The EUR/GBP pair traded well above the 0.9300 handle before it faced strong offers and started a downside move.

 

EUR/GBP Technical Analysis Euro British Pound

 

There downside move was strong, as the pair broke many supports like 0.9250, 9200, 9180 and the 100 hourly simple moving average. The pair recently cleared a crucial pivot zone at 0.9130 and the 0.9110 swing low.

 

It seems like the pair might soon test the 1.618 Fib extension of the last wave from the 0.9117 low to 0.9202 high at 0.9064 low. If sellers remain in control, there can be even be a test of the 0.9040 support area.

 

Overall, the EUR/GBP pair has started a major downside correction and could even test the 0.9000 handle in the near term.

Tags: , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry