Today our focus will remain on Europe as we take a look at the EUR/GBP currency pair. Despite a few ups and downs, overall the price of this pair has been growing in April and is currently near 4-week highs.
The British pound is affected by two things at the moment. First of all, we have fundamental reports that indicate the current state of the UK economy. The retail sales were just published and came in better than expected at 6.2% (against the forecasted 4.0%), and there is one more retail sales report coming in soon, which will also be very important for the pound. Moreover, the sterling’s momentum will also be influenced by the way Brexit is coming along. Analysts are hoping to hear an update on the government’s plans before the markets enter the Easter lull.
The European single currency currently also has to rely on fundamental data. However, with the Easter holidays closing the markets tomorrow and on Monday, we don’t really have anything to look forward to in the next few days. For now the outlook for the EUR remains neutral.
In terms of the daily chart, today we have a pivot point for the pair located at 0.8665, with the pair currently trading slightly below it. The daily support levels lie at 0.8649 and 0.8634. The daily resistances are at 0.8680 and 0.8696. The indicators of technical analysis are giving us a strong buy recommendation.
