Published On: Wed, Apr 26th, 2017

EURGBP – French Election Outcome Pushing Euro Higher

InstaForex

Euro Pound EURGBP

Key Points

  • The Euro rallied during the Asia, considering the market now not expecting the most horrible case scenario of Le Pen and Melenchon going in round 2 with lead.
  • The EURGBP pair rocketed to 0.8496, and remains bullish above an important support area at 0.8460 on the hourly chart.
  • Recently in the UK, the Rightmove House Price Index for April 2017 was released.
  • The outcome was lower than the forecast, as there was a rise in the Rightmove House Price Index by 1.1% in April 2017 (MoM), lower than the last +1.3%.

EURGBP Technical Analysis

The Euro opened with a huge gap up to 0.8495 against the British Pound where it found resistance and started correcting lower. The pair traded towards the 0.8460 support where it found bids and starting moving higher once again.

EURGBP Technical Analysis

The pair also found support near the 23.6% Fib retracement level of the last wave from the 0.8351 low to 0.8498 high.

So, if the 0.8460 support continue to hold, there is a chance of EURGBP gaining bids further, and move above the 0.8500 resistance in the near term.

UK’s Rightmove House Price Index

Today in the UK, the Rightmove House Price Index for April 2017 was released. The forecast was lined up for a rise of around 1.2% in April 2017, compared with the previous month.

The result was lower than the forecast, as there was a rise in the Rightmove House Price Index by 1.1% in April 2017 (MoM), lower than the last +1.3%. In terms of the yearly change, there was a rise of 2.2%, less than the last +2.3%.  The report added that “Price of property coming to market increases by 1.3% (+£3,877) this month, the same average rise as in buy-to-let-boosted March 2016. Monthly rise of this size has only been exceeded once at this time of year since 2007. Modest annual growth of 2.3% compared to 7.6% in March 2016, highlighting slower pace of increase”.

Overall, the EURGBP pair remains in a solid bullish trend, and the pair may move past 0.8490 soon.

FXTimes

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