FxWirePro: EUR/GBP extends range trade, awaits UK retail sales and ECB policy announcement for direction
EUR/GBP on track for a second consecutive week of declines. Pair has slipped below key trendline support at 0.7895. Poor labour markets data and household confidence released on Wednesday largely ignored. Markets wary ah…
EUR/GBP on track for a second consecutive week of declines. Pair has slipped below key trendline support at 0.7895.
Poor labour markets data and household confidence released on Wednesday largely ignored. Markets wary ahead of ECB policy meeting.
While no changes to policy are expected, markets will still be paying close attention to the statement and the comments in President Draghi’s accompanying press conference.
Foreign exchange markets will be particularly interested to see if Draghi reiterates that the ECB does not expected to reduce rates any further following the measures introduced last month.
Focus shall also be on UK monthly retail sales data due later during the day. UK retail sales are expected to show modest declines, but remain solid – however recent data has been surprising lower.
Technicals are biased lower, the pair is likely to drift lower towards testing the cloud top support, currently near 0.7780
Immediate resistance is located at 0.7899, ahead of 0.79 and then 0.7915 (trendline).
