- The Euro moved nicely during the past few weeks, and traded above 0.8750 against the British Pound.
- The EUR/GBP pair recently cleared a bearish trend line at 0.8600 on the weekly chart.
- In the Euro Zone today, the Italian Industrial Output for April 2017 released by the National Institute of Statistics posted a decline of 0.4% (MoM).
EUR/GBP Technical Analysis
The Euro slowly and steadily moved higher by roughly 400 pips against the British Pound during the past few weeks. The EUR/GBP pair after trading as low as 0.8296 formed a decent support and moved higher.
First, the pair broke the 23.6% Fib retracement level of the last decline from the 0.9224 high to 0.8296 low.
The second important move was above a bearish trend line at 0.8600 on the weekly chart. It opened the doors for more gains in EUR/GBP, as the pair moved past 0.8650.
EUR/GBP Hourly Chart
Later, the pair was able to move above the 50% Fib retracement level of the last decline from the 0.9224 high to 0.8296 low.
These all are positive signs, and signaling more gains above 0.8800 in the near term. The pair could even test 0.9000 in a couple of weeks if momentum is intact.
On the downside, the 0.8750 support is a key level, and may continue to hold losses if the pair corrects lower from the current levels.
Italian Industrial Output
Today in the Euro Zone, the Italian Industrial Output for April 2017 was released by the National Institute of Statistics. The market was expecting the Industrial Output to increase by 0.2% in April 2017, compared with the previous month.
In terms of the yearly change, the market was aligned for an increase of 2.4%, but the actual was again lower, as the Industrial Output increased by 1% in April 2017. The report added that the “percentage change of the average of the last three months with respect to the previous three months was -0.1”.
Overall, the Euro is likely to continue moving higher above 0.8850 and towards 0.9000 as long as the current momentum is intact.