- The Euro started a nice uptrend from the 0.8600 swing low against the British Pound.
- There is a solid bullish trend line with support at 0.8680 formed on the hourly chart of EUR/GBP.
- In the Euro Zone today, the Italian Consumer Confidence released by the ISTAT posted a decline from the last revised reading of 107.4 to 105.4.
EUR/GBP Technical Analysis
The Euro managed to gain pace recently from the 0.8600-10 swing low against the British Pound. The EUR/GBP pair traded higher and was able to break the 0.8665 and 0.8700 resistance levels.
The pair traded as high as 0.8723 where it is facing resistance and about to start a minor correction wave.
On the downside, an initial support is near the 23.6% Fib retracement level of the last wave from the 0.8601 low to 0.8723 high.
However, the most important one is near a solid bullish trend line with support at 0.8680 formed on the hourly chart.
EUR/GBP Hourly Chart
The trend line support is just above the 38.2% Fib retracement level of the last wave from the 0.8601 low to 0.8723 high.
So, if the pair corrects lower towards 0.8690 or 0.8680, it is likely to find bids for yet another upside move.
On the upside, a break above 0.8725 might call for further gains, which could take the pair towards 0.8750.
Italian Consumer Confidence
Today in the Euro Zone, the Italian Consumer Confidence was released by the ISTAT. The market was expecting the Index to decline from 107.5 to 107.3 in May 2017.
The actual result was on the lower side, as the Italian Consumer Confidence posted a decline to 105.4. Moreover, the last reading was also revised down to 107.4. Similarly, the Italian Business Confidence posted a decline from the last revised reading of 107.7 to 106.9.
The report published added that:
All components worsened: economic, personal, current and future (from 125.0 to 124.7, from 101.5 to 100.2, from 105.6 to 105.2 and from 110.1 to 108.1, respectively). The balance concerning expectations on unemployment grew from 29 to 33.
Overall, the Euro may dip a few pips from the current levels towards 0.8680, but likely to find support on the downside versus the British Pound.