FX.co ★ Fundamental Analysis of EUR/GBP for January 11, 2018

EUR/GBP has been corrective for a few months nso far. The pair is expected to have a break upward amid the current market structure. EUR and GBP have been fighting over to define a specified trend in the pair where EUR is expected to have an upper hand in the coming days. EUR has been stronger with the economic reports than GBP recently. So EUR is able to sustain gains and push higher. Today, Italian Retail Sales report is going to be published which is expected to increase to 0.8% from the previous negative value of -1.0% and Industrial Production report is also expected to increase to 0.8% from the previous value of 0.2%. Along with these economic reports, today ECB Monetary Policy Meeting Accounts is going to be held. Experts predict that the hawkish sentiment will be expressed on the back of better economic condition in the eurozone recently. On the other hand, GBP has been struggling with its economic reports where Manufacturing Production report showed a slight increase to 0.4% which was expected to be unchanged at 0.3% but Goods Trade Balance and Construction Output reports were worse than expected which pushed GBP down against EUR recently. Today, UK BOE Credit Condition Survey report is going to be published where debt issues will be discussed which is expected to be quite neutral in nature and make an impact on the market. As for the current scenario, EUR is expected to gain momentum over GBP in the coming days. Besides, GBP has been weighed down by political issues and economic reports that is one of the causes of EUR domination for further bullish move in the pair.

Now let us look at the technical chart. The price is currently showing some bullish divergence inside the range between 0.8750 and 0.90. The price is currently squeezing itself which is expected to lead to an impulsive move which may lead to an upward break with the target towards 0.9250 price area in the coming days. As the price remains above 0.8750, the bullish bias is expected to continue further.