- The EUR/GBP has drawn tight as both currencies mix on Thursday.
- The Euro remains steeply off of recent highs against the Pound Sterling.
- EUR lacking momentum after a miss on Eurozone GDP.
The EUR/GBP has been trading in a tight range through the week just above 0.8550 after a step decline in recent weeks dragged the Euro (EUR) down two and a third percent against the Pound Sterling (GBP), driven lower by weakening economic data from the Eurozone and a dovish European Central Bank (ECB) grappling with middling policy.
Eurozone Gross Domestic Product (GDP) for the third quarter mixed on market forecasts, with the QoQ figure coming in as expected at a contractionary -0.1% and the annualized figure for the year ending in the third quarter showing a flat 0.0% versus the forecast 0.1% uptick.
Euro traders are finding little reason to bid up the EUR as economic data continues to sour for the European bloc, after Wednesday’s Eurozone Retail Sales also missed expectations to decline 1.2% over the year into October, rebounding less than the expected -1.1% after dropping 2.9% for the annualized period in September.
The rest of the trading week is a thin showing on the economic calendar for both the Euro and the Pound Sterling, but next week kicks things off with labor figures from the UK.
EUR/GBP Technical Outlook
The EUR/GBP sees a tight range between 0.8580 and 0.8560 forming up this week, with the pair trading closely to the middle ground with little bounceback from recent weeks’ declines from the 0.8760 region.
Looking further out on the daily candlesticks, the EUR/GBP is trading directly into a heavy congestion zone that mired the pair through much of 2023’s middle quarters, and hopeful bidders will have a significant hill to climb if they’re going to push the Euro back up towards the 200-day Simple Moving Average (SMA) currently heading down towards 0.8650.