Chart - Courtesy Trading View
Spot Analysis:
EUR/GBP was trading 0.32% higher on the day at 0.8737 at around 07:45 GMT.
Previous Week's High/ Low: 0.8866/ 0.8608
Previous Session's High/ Low: 0.8757/ 0.8673
Fundamental Overview:
A big miss on UK Retail Sales data keeps the British pound under pressure.
Data released earlier today showed UK retail sales fell to -1.4% over the month in September vs. -0.5% expected and -1.7% previous. Core retail sales slipped 1.5% MoM vs. -0.3% expected and -1.6% previous.
On an annualized basis, the UK retail sales plunged -6.9% in September versus -5.0% expected and -5.6% prior.
The core retail sales tumbled 6.2% in the reported month versus -4.1% expectations and -5.3% previous.
Technical Analysis:
- EUR/GBP is extending gains for the 6th straight session
- Price action has ignored previous session's Doji formation
- The pair has broken above 21-EMA, raising scope for more upside
- Price action has edged above 200H MA, GMMA indicator shows bullish shift on the intraday charts
Major Support and Resistance Levels:
Support - 0.8711 (200H MA), 0.8670 (55-EMA)
Resistance - 0.8764 (20-DMA), 0.8782 (5-week MA)
Summary: EUR/GBP was trading with bullish bias. Scope for test of fresh monthly highs above 0.88 mark.
