EUR/GBP Steady Above 0.7800 Mark Ahead of German IFO Business Climate
Recovering from its Monday morning gap down opening of 0.7752 monthly low level, the EUR/GBP pair recovery swiftly and is currently holding just above 0.7800 mark.
Euro has benefited from expectations of a better German Ifo Business Climate Index reading for the month of April, due for release in a short while from now and is expected to move higher to 107.0 as compared 106.7 recorded last month.
Technical levels to watch
From current levels, the recovery trend is likely to confront immediate resistance near 0.7830 level beyond which the pair could be aiming for 0.7850 round figure. The pair has been trending lower within a short-term descending trend-channel formation on hourly charts. Hence, any further strength beyond 0.7850 level is likely to face stiff resistance at the trend-channel resistance near 0.7880 region. Only a sustained break-through the trend-channel resistance would support further bullish momentum in the near-term.
On the downside, the trend-channel support near 0.7770 level (the pair did open below the trend-channel support) would again come into play as an immediate support. Drop back below the descending trend-channel support would confirm a break-down and has the potential to drag the pair immediately towards 0.7735 intermediate support, before eventually dropping to March daily closing lows support near 0.7715 region.