EUR/GBP Forecast – Euro Remains in Uptrend Above 0.8945 Vs British Pound

EUR/GBP Forecast – Euro Remains in Uptrend Above 0.8945 Vs British Pound

  • – The Euro started a nice upside move after trading as low as 0.8900 against the British Pound.
  • – There is a key ascending channel in place with support at 0.8955 on the hourly chart of the EUR/GBP pair.
  • – Recently in the UK, the Rightmove House Price Index for August 2018 was released.
  • – The outcome was below the forecast of -1.2% as the Rightmove House Price Index declined 2.3% (MoM).

 

UK’s Rightmove House Price Index

Recently in the UK, the Rightmove House Price Index for August 2018 was released. The market was positioned for a decline of around 1.2% in the index in August 2018 compared with the previous month.

 

The actual result was below the forecast of -1.2% as the Rightmove House Price Index declined 2.3%.  Looking at the yearly change, there was a rise of 1.1% in August 2018, less than the last increase of 1.4%.

 

The EUR/GBP pair is currently placed nicely above the 0.8940-50 support area and it could continue to move higher in the short term.

 

EUR/GBP Technical Analysis

The Euro consolidated near the 0.8900 level for some time and formed a base for an upside move against the British Pound. The EUR/GBP pair started an upside move and broke the 0.8920 and 0.8940 resistance levels to settle above the 100 hourly simple moving average.

 

EUR/GBP Technical Analysis Euro British Pound

 

The pair even broke the 0.8960 level and traded as high as 0.8977. Later, there was a downside correction below the 0.8970 level. The pair is currently testing the 23.6% Fib retracement level of the last wave from the 0.8933 low to 0.8977 high.

 

On the downside, there are several supports near the 0.8950 level. There is also a key ascending channel in place with support at 0.8955 on the hourly chart of the EUR/GBP pair. The channel support is close to the 50% Fib retracement level of the last wave from the 0.8933 low to 0.8977 high.

 

Therefore, if the pair corrects lower further towards the 0.8950 and 0.8945 levels, it is likely to find supports. On the upside, the pair has to break the 0.8975-80 zone for more gains above the 0.9000 level in the near term.


Also published on Medium.

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