- The Euro is slowly and steadily moving higher above 0.8780 against the British Pound.
- There is a crucial bullish trend line formed with support at 0.8780 on the hourly chart of the EUR/GBP pair.
- Recently in the Euro Zone, the Consumer Confidence for June 2017 (Prelim) was released by the European Commission.
- The outcome was positive, as there was an increase from the last reading of -3.3 to -1.3.
EUR/GBP Technical Analysis
The Euro has gained momentum recently against the British Pound with a close above the 0.8750 support area. The EUR/GBP pair is in a steady uptrend and recently traded as high as 0.8840 from where a correction wave was initiated.
The pair corrected lower and moved below the 50% Fib retracement level of the last wave from the 0.8769 low to 0.8827 high.
On the downside, there is a crucial bullish trend line formed with support at 0.8780 on the hourly chart, which might play a key role in the near future.
EUR/GBP Hourly Chart
At the moment, the pair is testing the 76.4% Fib retracement level of the last wave from the 0.8769 low to 0.8827 high.
There is a chance of a complete test of the 0.8769 swing low to fill buy orders on the downside. The trend line support at 0.8780-70 might hold the downside for another ride higher.
Once the current dip is complete, the pair is likely to resume the uptrend with a break of the 0.8810 resistance. If buyers gain traction, the pair could even retest the last swing high of 0.8830.
Euro Zone Consumer Confidence
Recently in the Euro Zone, the Consumer Confidence for June 2017 (Prelim) was released by the European Commission. The market was expecting no change from the last reading of -3.3.
However, the result was better than the forecast, as there was a rise from -3.3 to -1.3. It helped the Euro in gaining traction in the short term.
In the Weekly meeting report, the EU commission stated:
The Commission proposed to mobilise €1.2 billion under the EU Solidarity Fund, the highest sum ever mobilised in a single instalment, following the earthquakes of 2016 and 2017 in the Italian regions of Abruzzo, Lazio, Marche and Umbria.
Overall, the Euro might soon complete the current correction and move above 0.8810 in the near term.