EUR/GBP Forecast – Euro To Decline Further Vs British Pound?

EUR/GBP Forecast – Euro To Decline Further Vs British Pound?

  • – The Euro is under a lot of pressure and it could decline below 0.8740 against the British Pound.
  • – There is a key bearish trend line forming with current resistance at 0.8765 on the hourly chart of the EUR/GBP pair.
  • – Recently in the Euro Zone, the Consumer Confidence (Prelim) for March 2018 was released by the European Commission.
  • – The outcome was above the forecast of 0.0 as the Consumer Confidence came in at 0.1 in March 2018.

 

Euro Zone Consumer Confidence

Recently in the Euro Zone, the Consumer Confidence (Prelim) for March 2018 was released by the European Commission. The market was positioned for a decline from the last reading of 0.1 to 0.0 in March 2018 (Prelim).

 

The actual result was above the forecast of 0.0 as the Consumer Confidence came in at 0.1 in March 2018.  However, the reading of 0.1 was not impressive since there was no rise from the last reading.

 

It seems like EUR/GBP pair is at a risk of more declines and it could even break the 0.8740 support level in the near term.

 

EUR/GBP Technical Analysis

The Euro started a major downside move from well above the 0.8850 level against the British Pound. The EUR/GBP pair traded lower and broke many support levels such as 0.8800 and 0.8780 to settle below the 100 hourly simple moving average.

 

EUR/GBP Technical Analysis Euro British Pound

 

The pair recently traded as low as 0.8744 and is currently consolidating losses. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.8798 high to 0.8744 low.

 

There is also a key bearish trend line forming with current resistance at 0.8765 on the hourly chart of the EUR/GBP pair. The trend line resistance is near the 50% Fib retracement level of the last decline from the 0.8798 high to 0.8744 low.

 

Therefore, if the pair corrects higher from the current levels, it could face a strong selling interest near the 0.8765-70 levels. On the downside, the recent low near 0.8740 is a short term support. A break below 0.8740 could push the pair towards the next support at 0.8700.


Also published on Medium.

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