- The Euro after surging past 0.8460 against the British Pound found resistance near 0.8508.
- There is a contracting triangle pattern with resistance at 0.8509 formed on the 4-hours chart of EURGBP, which may act as a catalyst for the next move.
- Today in the Euro Zone, the French Business Climate for April 2017 released by INSEE posted a rise from the last revised reading of 105 to 108.
EURGBP Technical Analysis
The Euro opened with a gap up to 0.8508 against the British Pound just like EURUSD and traded with a positive bias. Later, the EURGBP pair found resistance, and moved down towards 0.8450
The pair traded below the 23.6% Fib retracement level of the last wave from the 0.8350 low to 0.8508 high. However, the downsides were limited.
At the moment, the pair is forming contracting triangle pattern with resistance at 0.8509 on the 4-hours chart, and remains supported above the 38.2% Fib retracement level of the last wave from the 0.8350 low to 0.8508 high.
EURGBP 4-Hours Chart
The pair is attempting an upside move, but a break above 0.8508-10 won’t be easy.
However, considering the fact that the pair has cleared many important resistances, there is a chance of it breaking 0.8510 for further gains.
The H4 RSI of EURGBP is around the 65 level, and stable.
French Business Climate Index
Today in the Euro Zone, the French Business Climate for April 2017 was released by INSEE. The forecast was slated for no change from the last reading of 104 in April 2017.
However, the actual result was above the forecast, as the French Business Climate Index posted a rise to 108. The last reading was also revised up from 104 to 105. The most gained sector was manufacturing, up by 3 points. The retail trade was down 3 points, and services down by 1.
The report stated that “In April 2017, as since December 2016, the business climate remains favorable. The composite indicator, compiled from the answers of business managers in the main sectors, stands, as in March, four points above its long-term average (100)”.
Overall, the EURGBP pair remains supported, and if there is a break above the triangle resistance at 0.8509, there can be more gains towards 0.8540.