FxWirePro: EUR/GBP spikes above 0.78 handle despite poor German IFO data
Data released earlier today showed that German Business Expectations, Current Assessment and Business Climate have all missed expectations for the current month. The headline German Ifo Business Climate figure came in at…
Data released earlier today showed that German Business Expectations, Current Assessment and Business Climate have all missed expectations for the current month.
The headline German Ifo Business Climate figure came in at 106.6 points in April versus 106.7 seen in March, and opposed to expectations of 107.1.
The Ifo Current Assessment sub-survey, indicating current conditions in Euro zone’s most powerful economy, dropped to 113.2 points, below last month's 113.8 and estimates at the same level.
While the Ifo Expectations Index, indicating firms' outlook for the next six months, grew to 100.4 points, beating the previous figure of 100, while the markets had predicted a 100.9 reading.
Upside in the pair gained traction despite poor German IFO data which has surprised markets to the downside today.
But post IFO the pair spike to hit session highs at 0.7809. Gains are not sustainable, major moving averages are biased lower, momentum studies are bearish.
Immediate supports are located at 0.7735 (March 14th lows), 0.7683 (110 EMA) and 0.7645 (cloud base). On the upside, resistance is seen at 0.7826 (55-EMA) and 0.7842 (5-DMA).
