The Euro (EUR) inched lower against the Great Britain Pound (GBP) on Friday, decreasing the price of EURGBP to less than 0.8400 following the Britain’s retail sales news. The technical bias has turned bearish after the emergence of bearish engulfing candle couple of days ago.

Technical Analysis

As of this writing, the pair is being traded near 0.8357. A support can be noted around 0.8239 (the 61.8% fib level as well as pink trendline) ahead of 0.8105 (a key horizontal support level on daily timeframe) and then 0.8000 (the psychological level).

On the upside, a hurdle may be noted around 0.8433 (the trendline resistance area) ahead of 0.8542 (the 38.2% fib level) and then 0.8550 (the psychological number) as demonstrated in the given above daily chart. The technical bias shall remain bullish as long as the 0.8000 support area is intact.

UK Retail Sales

British retail sales posted the biggest quarterly fall in seven years during the first three months of 2017, as rising prices since last year’s Brexit vote started to pressure consumers. Retail sales volumes contracted 1.4 percent in the first quarter following a 0.8 percent rise in the last three months of 2016, the Office for National Statistics said on Friday. That was the biggest quarterly fall since the first quarter of 2010, and is likely to reinforce the view among many economists that household spending – the main driver of the economy – is now slowing. The ONS said retail sales were likely to shave around 0.1 percentage points off first quarter economic growth – the first negative contribution of the sector since the last quarter of 2010.

What Assets to Trade after Today

In addition to EURGBP, trading GBPCAD, GBPAUD and GBPUSD can be a good strategy as the aforementioned pairs are highly reactive to the Britain’s economic news.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.