EUR/GBP Still Struggling Below 0.7800 Handle
pair on Friday is trading with minor gains near 0.7780 and is
attempting a fresh move towards 0.7800 level, above which it has
repeatedly struggled to sustain its strength.
On H4, the pair has been oscillating within a short-term descending trend-channel, extending from April highs. Moreover of late the pair now moved within a narrow trading range between 0.7750-0.7800 region, suggesting indecisive direction. The pair's near-term direction gets confirmed once the break-out of the range happens. Even lower-than-expected German retail sales failed to provide the required break-out. Data released on Friday showed German retail sales for March fell 1.1% as against expected growth of 0.4%.
Technical levels to watch
From current levels, weakness below 0.7760-50 support is likely to accelerate the fall even below weekly lows support near 0.7735 level towards testing the short-term descending trend-channel support near 0.7700 round figure mark.
Alternatively, a convincing break-through 0.7800 strong resistance should assist the pair to test the trend-channel resistance near 0.7725-30 area. Furthermore, above 0.7725-30 resistance, marking the descending channel break-out, might now trigger a near-term short-covering move immediately towards 0.7890-0.7900 round figure mark.