European investors at 11:00 have read series of macroeconomic readings from European economy – among them the most important are information on GDP forecasts, trade balance and the ZEW index.
The histogram of the GDP dynamics is presented in the chart below:
Prior to 11am EUR/GBP rapidly gained (almost 50 pips) reaching monthly highs. The price response to the latest data is presented on chart below. Due to results of British inflation from 10:30 am – GBP initially reacted to good growth data, but then dynamically slipped.
Analysing the situation on chart D1, we note that price breaks resistance of 23.6% of the Fibonacci retracement at 0.8530, heading towards the bearish trend line drawn since October last year. Closing over 0.8530 and re-testing the level from the top will be an opportunity to open long positions – but only after mid-term LT can be a clearer impetus for bullish run: