EUR/GBP has recently bounced off the important support area of 0.87 which led the daily close to certain indecision in the market. Today is going to be volatile period for both EUR and GBP having a series of impactful economic reports to be published. Today, EUR Italian Retail Sales report is going to be published which is expected to increase to 0.3% from the previous value of -0.5% and ECB President Draghi is going to speak about the interest rate decisions and monetary policies for the coming days which is expected to be quite neutral in nature. On the GBP side, today Manufacturing Production report is going to be published which is expected to increase to 0.2% from the previous value of 0.1%, Goods Trade Balance is expected to have a slight decrease in deficit to -12.0B from the previous figure of -12.3B, Construction Output is expected to increase to 0.7% from the previous negative value of -3.4% and Industrial Production is expected to decrease to 0.4% from the previous value of 1.3%. As of the current scenario, GBP is quite optimistic with the upcoming economic reports whereas EUR has mixed sentiment. If the GBP reports are better than expected than further bearish pressure is expected in the pair or else EUR is going to push the price higher for certain retracement in this volatile trend market.
Now let us look at the technical view. The price is currently residing above 0.87 with a daily close which is expected to push the price higher towards the 0.8750 area before showing any bearish pressure in the coming days. The trend is still bearish despite the recent volatile and corrective structure of the market but as the price remains above 0.87 with a daily close, certain retrace is expected in this pair before the price proceeds lower with target towards 0.85 in the future. A daily close below 0.87 will lead to further bearish pressure in the market.