- EUR / GBP is up 0.22% on weak UK economic data.
- UK retail sales data is down 2.5% versus 0.4% expected.
- The short-term trend is up, however stronger UK economic data supports the British pound.
The pair EUR/GBP it rises for the second day in a row, earning a modest 0.22%, trading around 0.8580. For the second week in a row, it regains some ground lost against the pound.
On the Eurozone records, Germany’s PPI on a monthly basis stood at 1.9% versus the 0.8% forecast. For the UK, consumer confidence and retail sales were released. UK GfK consumer confidence fell to -8 from -7 expected, however it remained at pre-pandemic levels. Regarding retail sales for the month of July, the report disappointed, with a drop of 2.5% in the last month, compared to the expected growth of the market of 0.4%.
For next week, on Monday, the PMI figures for the UK, France, Germany and the euro zone will be released.
EUR / GBP technical perspective
The EUR / GBP is trading around 0.8576 between the daily 100 and 50 moving averages, while the 200 DMA stands at 0.8710. In the short term, the pair is in an uptrend. Strong resistance lies at the 100 DMA and a round psychological level at 0.8600, while the July 20 high at 0.8669 is the second resistance, followed by 0.8700. On the other hand, the first support is at the 50 DMA at 0.8550, followed by the 0.8500 and then this year’s low at 0.8450.
The RSI is at 60.61, supporting the uptrend, while the average true range is 36 flat.
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