EUR/GBP Forecast – Euro Eyes Further Losses Vs British Pound

EUR/GBP Forecast – Euro Eyes Further Losses Vs British Pound

  • – The Euro is under heavy selling pressure and already broke the 0.8800 support against the British Pound.
  • – There are two bearish trend lines forming with resistance at 0.8800 and 0.8820 on the hourly chart of the EUR/GBP pair.
  • – Today in the Euro Zone, the Italian Consumer Confidence for Sep 2017 was released by the Istat.
  • – The outcome was above the forecast of 110.8, as there was a rise in the index from 111.2 (revised) to 115.5.

 

Italian Consumer Confidence

Today in the Euro Zone, the Italian Consumer Confidence for Sep 2017 was released by the Istat. The market was positioned for a minor decline in the Confidence to 110.8.

 

The actual result was above the forecast of 110.8, as there was a rise in the index from 111.2 (revised) to 115.5. All components registered an increase such as economic index was up from 129.3 to 143.9 and the personal index was up from 105.6 to 106.5. The report added that:

 

The balance concerning expectations on unemployment fell from 30.5 to 11.7. The balance on inflation perceptions referring to the last 12 months decreased from -11.1 to -14.2 while the balance on inflation expectations for next 12 months grew from -9.5 to -3.8.

 

Overall, the EUR/GBP pair might continue to slide and could even break the 0.8754 low in the near term.

 

EUR/GBP Technical Analysis

The Euro started a downside move from the 0.8890 swing high against the British Pound. The EUR/GBP pair broke the 0.8800 support zone and settled below the 100 hourly simple moving average.

 

EUR/GBP Technical Analysis Euro British Pound

 

The pair traded as low as 0.8754 from where a recovery was started. It moved above the 23.6% Fib retracement level of the last decline from the 0.8884 high to 0.8741 high. However, the upside move was protected by the 0.8800 handle and the 100 hourly simple moving average.

 

Moreover, there are two bearish trend lines with resistance at 0.8800 and 0.8820 on the hourly chart to act as a hurdle for more gains. An intermediate resistance is around the 50% Fib retracement level of the last decline from the 0.8884 high to 0.8741 high.

 

Overall, the EUR/GBP pair might be considered as sell on rallies towards 0.8800-0.8820 as long as it is below 0.8840.

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