EUR/GBP Forecast – Euro at Risk of More Declines Vs British Pound

EUR/GBP Forecast – Euro at Risk of More Declines Vs British Pound

  • – The Euro started a new downside wave from the 0.9020 swing high against the British Pound.
  • – There is a connecting bearish trend line forming with resistance at 0.8900 on the hourly chart of the EUR/GBP pair.
  • – Recently in the Euro Area, the Consumer Confidence for Oct 2017 (Prelim) was released by the European Commission.
  • – The outcome was above the forecast of -1.1, as there was a rise in the index from -1.2 to -1.0.

 

Euro Area Consumer Confidence

Recently in the Euro Area, the Consumer Confidence for Oct 2017 (Prelim) was released by the European Commission. The market was positioned for a minor rise in the index from -1.2 to -1.1.

 

The actual result was above the forecast of -1.1, as there was a rise in the index from -1.2 to -1.0. Looking at the European Union Consumer Confidence, there was no change in the index from -1.6 in Oct 2017 compared to September 2017.

 

Overall, the EUR/GBP pair was not impressed and remains in the bearish zone below the 0.8920-00 resistance area.

 

EUR/GBP Technical Analysis

The Euro after a solid upside move above the 0.9000 handle found offers against the British Pound. The EUR/GBP pair traded as high as 0.9022 before starting a new downside wave. It declined and broke the 0.8950 support along with the 100 hourly simple moving average.

 

EUR/GBP Technical Analysis Euro British Pound

 

The pair traded below the 50% Fib retracement level of the last wave from the 0.8856 low to 0.9022 high, which is a bearish signal in the short term. There was even a break below a short-term bullish trend line at 0.8970 on the hourly chart to ignite a downside wave.

 

At the moment, the pair is attempting a close below the 76.4% Fib retracement level of the last wave from the 0.8856 low to 0.9022 high. Therefore, there are high chances of it moving back towards the last swing low of 0.8856.

 

On the upside, there is a connecting bearish trend line forming with resistance at 0.8900 on the hourly chart. Selling rallies in the short term can be opted with a stop above 0.8930.

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