EUR/GBP: direction In which the outbreak occurs?

FXStreet The EUR/GBP traded recently at 0.8501 and to 0.24 per cent in the Plus, after the high and Low prices of the last 24 trading hours at 0,8512 or 0,8457 was marked.

The political conflagration is temporarily deleted, and so both the economies and the Central banks in the foreground. The common currency was supposed to receive this week on positive messages to the gross domestic product and consumer prices from the Eurozone and the German industrial production. In the UK the labour market data, consumers are prices, producer prices and retail sales on the Agenda.

The area around 1,2950/00 is a key resistance for the Sterling compared to the Dollar, such as the 1,1000 for the Euro. The FX-universe is still aligned right sideways, but this week could be for the currency pair is crucial, depending on how the economic data will be and whether these levels can be exceeded, tested and sustainable. After that, the focus should also be directed to the elections in the UK, which take place in the next month. This should be the next course driver for the currency pair EUR/GBP.

The Conservatives around the Prime Minister Theresa May are according to the latest polls, clearly ahead. On the market, a victory of the current head of government is considered to be a foregone conclusion. So you want to strengthen before the start of the difficult Brexit talks with the European Union, its negotiating position with a stable majority.

EUR/GBP perspective

The Commerzbank market analysts explained that the EUR/GBP is on the road to recovery, but this is likely to meet at the resistors on new seller: “The currency pair has recovered but is still below the 55 – and 200-days-line in 0,8548/97, which is reinforced by the seven-month resistance line at 0,8557. As long as it’s quoted below, remains a Retest of the key support at 0,8334/04 a realistic scenario. A rear case including would let the July lows in 2016 0,8252 in focus“.

** FXStreet News Editorial, FXStreet**

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