EUR/GBP is currently showing bearish squeeze towards 0.8700-50 support area which is expected to break below in the coming days. Despite having worse economic reports recently, GBP sustained it momentum against EUR which is expected to continue further in the coming days. Today the German Final GDP report is going to be published which is expected to be unchanged at 0.6%. The Final CPI and Final Core CPI are also expected to be unchanged at 1.3% and at 1.0% correspondingly. On the other hand, today Bank of England Deputy Governor David Ramsden is going to speak about the upcoming monetary policies and the key interest rates which is expected to be neutral with its impact for the GBP. As of the current scenario, EUR economic reports forecasted to be quite indecisive with an unchanged value whereas any positive comments from Ramsden are expected to inject volatility and impulsive pressure on the GBP side in the coming days.
Now let us look at the technical view. The price is currently residing below 0.8850 trend line resistance after a rejection off the level. The trend line has been respected quite well along the bearish squeeze from where the price is expected to hold as a resistance and push lower towards the support area of 0.8700-50. As the price remains below 0.89 price area, the bearish bias is expected to continue further.
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