The Euro remained confined in a broad range below the 0.8800 resistance against the British Pound.
There is a major bearish trend line in place with resistance near 0.8800 on the 4-hours chart of EUR/GBP.
On the downside, supports are seen near the 0.8720 and 0.8700 levels.
Today in the Euro Zone, the GDP report for Q1 2018 will be released, which is forecasted to post an increase of 0.4% (QoQ).
EURGBP Technical Analysis
The Euro was rejected from the 0.8700 support recently and traded higher against the British Pound. The EUR/GBP pair gained traction and moved above the 0.8720 resistance.However, the upside move was limited by the 0.8800 resistance. There is also a major bearish trend line in place with resistance near 0.8800 on the 4-hours chart of EUR/GBP.It seems like there is a large consolidation phase forming around the 0.8720-40 zone. On the upside, a break and close above the 0.8800 resistance level is needed for more gains. A successful close above 0.8800 could open the doors for a push towards the 0.9000 level.On the flip side, if there is a downside correction, the pair will most likely find support near the 0.8720 level. Below this, the 0.8700 level is a crucial support and a pivot level. Should there be a downside break below 0.8700, the pair may perhaps trade down sharply towards 0.8600.Today, there is a major release in the Euro Zone as the GDP report for Q1 2018 will be released. If the actual result beats the forecast of +0.4%, the Euro may perhaps gain traction in the near term.EUR/USD recently settled above the 1.1700 barrier, which could help the overall market sentiment for the Euro in the near term.
Economic Releases to Watch Today
German Factory Orders for April 2018 (MoM) – Forecast +0.8%, versus -0.9% previous.
Euro Zone Gross Domestic Product Q1 2018 (QoQ) - Forecast 0.4%, versus 0.4% previous.
Euro Zone Gross Domestic Product Q1 2018 (YoY) - Forecast 2.5%, versus 2.5% previous.
US Initial Jobless Claims - Forecast 225K, versus 221K previous.
However, the upside move was limited by the 0.8800 resistance. There is also a major bearish trend line in place with resistance near 0.8800 on the 4-hours chart of EUR/GBP.It seems like there is a large consolidation phase forming around the 0.8720-40 zone. On the upside, a break and close above the 0.8800 resistance level is needed for more gains. A successful close above 0.8800 could open the doors for a push towards the 0.9000 level.On the flip side, if there is a downside correction, the pair will most likely find support near the 0.8720 level. Below this, the 0.8700 level is a crucial support and a pivot level. Should there be a downside break below 0.8700, the pair may perhaps trade down sharply towards 0.8600.Today, there is a major release in the Euro Zone as the GDP report for Q1 2018 will be released. If the actual result beats the forecast of +0.4%, the Euro may perhaps gain traction in the near term.EUR/USD recently settled above the 1.1700 barrier, which could help the overall market sentiment for the Euro in the near term.