The single currency Euro gained bullish momentum in the wake of a series of positive economic figures. The services PMI figures from France, German, and Italy are supporting the shared currency Euro.
The Eurozone's Retail Sales data increased by 0.1% in the euro area (EA19) and by 0.2% in the EU28, which is just in line with analysts' forecast. On the other hand, Sterling surged in early October as traders raised expectations that a Brexit agreement would move through Parliament, whereby abolishing Brexit risk from the outlook.
Lately, the EUR/GBP dropped ground despite a stable employment release in Spain. Unemployment change declined by 97.9 thousand; it's the best report since 2012. While the British PMI rose out of the negative area, growing to 50.0. Consequently, the EUR/GBP started gaining bearish momentum.
Technically, the EUR/GBP traded in an oversold zone, but the reversed soon to drive bullish trend above 0.8585 level. The formation of Tweezers Top on the 2-hour chart is suggesting the chance of a bearish reversal.
|
Support |
Pivot Point |
Resistance |
|
0.8572 |
0.8609 |
0.8633 |
|
0.8548 |
0.8669 |
|
|
0.8488 |
0.873 |
The EUR/GBP is now testing the 38.2% Fibonacci retracement level at 0.8610, and the bullish breakout of this level can extend buying until 61.8% Fibonacci retracement level of 0.8625.
EUR/GBP - Trade Setup
Sell Below 0.8625
Take Profit 0.8585
Stop Loss 0.8645
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