EUR/GBP at multi-month lows, Pound recovers

• EUR/GBP declines to 0.8660, while the British pound rebounds on Friday.
• EU retail sales, UK GDP in the back half of next week’s economic calendar.
• The Pound will be the big winner on Friday.

The pair EUR/GBP is approaching 0.8660 at the end of the week, and the recovery of the British Pound (GBP) from the lows of recent months is taking the EUR/GBP pair to offers not seen for almost three weeks.

This week, the Euro traded virtually flat against the British pound, within a wide range, before market sentiment recovered following the release of US Non-Farm Payrolls (NFP), which sparked risk appetite among investors heading into the eleventh hour.

Volatility will be repeated in the Pound next Friday, with British GDP on the horizon

EU retail sales will be released on Wednesday and UK Gross Domestic Product (GDP) will be released on Friday.

EU retail sales are expected to continue to decline in the year to September, forecast at -3.1% versus -2.1% previously, while UK GDP is expected to decline in the third quarter, forecast -0.1% compared to 0.2% in the previous quarter.

EUR/GBP Technical Outlook

The EUR/GBP pair weakened on Friday and fell directly towards 0.8660, bumping into an uptrend line from the mid-August low just below 0.8500.

The pair has moved away from the long-term average prices, moving down from the 200-day SMA, which is currently drifting from the 0.8700 area.

Short-term technical support for the EUR/GBP pair lies at the 50-day SMA which is leaning bullish from the 0.8640 level, and investors will want to keep an eye on any wobbles in the pair’s bids as prices struggle. for a clean break of the uptrend line.

EUR/GBP Daily Chart

EUR/GBP technical levels