EUR/GBP has been impulsive amid the bearish pressure recently which is expected to continue further in the coming days. EUR has been in a bad shape recently amid downbeat economic reports. On the other, positive reports from the UK helped GBP to extend further bearish momentum in the pair. Recently, German PPI report was published with a decrease to -0.1% from the previous value of 0.5% which was expected to be at 0.1%, German ZEW Economic Sentiment report has also showed a decrease to 5.1 from the previous figure of 17.8 which was expected to be at 13.1, and ZEW Economic Sentiment report for the eurozone was also published with a significant decrease to 13.4 from the previous figure of 29.3 which was expected to be at 28.1. So, the downbeat economic reports helped GBP to gain momentum recently which was enabled a push today amid upbeat economic reports. Today, the UK Average Earning Index report was published with an increase to 2.8% from the previous value of 2.7% which was expected to decrease to 2.6%, Claimant Count Change had a worse reading with of 9.2k new applications from the previous negative figure of -1.6k which was expected to be at -3.1k, Public Sector Net Borrowing was quite as expected at -0.3B, increasing from the previous negative value of -11.7B which was expected to be at -0.4B, and Unemployment Rate declined to 4.3% which was expected to be unchanged at 4.4%. As for the current scenario, GBP is currently quite strong fundamentally whereas Flash Services and Manufacturing PMI reports from the eurozone would not have much impact on the gain against GBP in the coming days. To sum up, GBP is expected to have an upper hand over EUR and continue to dominate further.
Now let us look at the technical view. The price is currently quite bearish in nature residing below 0.8750 price area from where the price is expected to proceed towards 0.87 price area and later with certain retracement it is expected to break below the price level and proceed much lower towards 0.84 in the coming days. As the price remains below 0.90 with a daily close, the bearish bias is expected to continue further.
