EUR/GBP Price Forecast: Euro bulls aim for the 0.8620 resistance area
- The Euro keeps heading higher against the Pound, despite weak Eurozone employment figures.
- A dovish Bailey and soft UK manufacturing activity added pressure on the GBP on Tuesday
- EUR/GBP is on a bullish cycle with a potential target at 0.8620.
The Euro keeps heading north against the British Pound for the fourth consecutive time on Wednesday. The pair has shrugged off the soft Eurozone employment levels and extended its rally to the 0.8600 area, with the 0.8620 level on the bulls’ focus.
ECB speakers have warned about the risks of sustainably low inflation, tilting the bank’s stance to dovish territory, but the impact on the pair was minimal. BoE Bailey was also dovish on Tuesday, following uninspiring manufacturing activity figures in the UK
Technical Analysis: EURGBP is on a bullish cycle, aiming for the 0.8620 area
From a technical standpoint, the pair might be on the fifth wave of a bullish Elliot Wave cycle from late May’s lows. The limited downside attempts enforce the bullish view with the area between April 16 and 22 lows, 0.8615-0.8620, as a plausible target.
Above here, the April 13 high, at 0.8695, would close the path towards the April 11 high, at 0.8735.
On the downside, previous resistance area at 0.8560-0.8575 (June 18, 23 highs) is now acting as support, closing the path towards the June 25, 27 lows at 0.8515 area. A bearish move below here cancels the bullish view and brings 0.8450 (May 21, June 2 highs) back into play.
Euro PRICE This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.40% | 0.06% | -0.22% | -0.33% | -0.46% | -0.36% | -0.78% | |
| EUR | 0.40% | 0.42% | 0.20% | 0.04% | -0.08% | 0.05% | -0.38% | |
| GBP | -0.06% | -0.42% | -0.41% | -0.38% | -0.49% | -0.39% | -0.80% | |
| JPY | 0.22% | -0.20% | 0.41% | -0.13% | -0.19% | -0.10% | -0.51% | |
| CAD | 0.33% | -0.04% | 0.38% | 0.13% | -0.17% | -0.04% | -0.44% | |
| AUD | 0.46% | 0.08% | 0.49% | 0.19% | 0.17% | 0.11% | -0.30% | |
| NZD | 0.36% | -0.05% | 0.39% | 0.10% | 0.04% | -0.11% | -0.41% | |
| CHF | 0.78% | 0.38% | 0.80% | 0.51% | 0.44% | 0.30% | 0.41% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
