EUR/GBP has been quite bullish with the recent momentum which leads the price higher after breaching above 0.8850 area with a daily close recently. As of the recent economic, political and Brexit situation, GBP has been struggling to perform better against EUR which resulted in such impulsive bullish pressure in the process.
Today EUR French Industrial Production report is going to be published which is expected to increase to 0.5% from the previous negative value of -0.2%, French Prelim Private Payrolls report is expected to increase to 0.3% from the previous value of 0.2% and Italian Trade Balance is also expected to increase to 3.41B from the previous figure of 3.38B.
On the other hand, today the UK GDP report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3%, Manufacturing Production is expected to decrease to 0.3% from the previous value of 0.4% and Prelim GDP is expected to increase to 0.4% from the previous value of 0.2%.
As of the current scenario, EUR is quite optimistic about the upcoming economic reports whereas GBP is still struggling with the dovish expectation of the high impact economic reports like GDP. If GBP performs better than expected, only then certain gain on the GBP may be observed or else EUR is expected to dominate further in the process.
Now let us look at the technical view. The price is expected to push lower towards 0.8950 area before pushing higher with the target towards the 0.9450 resistance area in the coming days. As the current price is quite away from the mean average of 20 EMA, so the price is expected to retrace towards 0.8950 before continuing the bullish momentum in the pair. As the price remains above the 0.8850 area with a daily close, the bullish bias is expected to continue further.
SUPPORT: 0.8850, 0.8950
The material has been provided by InstaForex Company – www.instaforex.com