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Forex: EUR/GBP rises towards 0.8500 handle after UK CBI data

FXstreet.com (Barcelona) - The British Pound is doing the opposite movement of the Euro, as the first is dropping after testing resistance at 1.5200 and the latter is bouncing after a spike down to 1.2840 low. So, the EUR/GBP is finding room to improvement during the European session. After a low at 0.8460, the cross kept creeping higher and has reached 0.8492 high so far, after the release of UK CBI realized trades data.

UK CBI Realized distributive trades came in at 0 in March, down from 8 and disappointing analysts aiming at 11. However, expectations for April are higher, with forecasted sales from 8% to 15% (highest since December). Chancellor Osborne is testifying to the Commons Treasury Panel regarding the Budget.

The market is quite calm during the European morning, with not much going on besides of French consumer confidence at 84 (from 86 and below 85 consensus) and ECB’s Couere reply to Dijsselbloem comments made yesterday. ECB’s Couere said he doesn’t agree with Dijsselbloem and the Cyprus bailout is not a new model for Europe, adding that there’s no reason to think French banks have the same problem as Cyprus. Also, he indicated that the troubles in Cyprus only show the need for ECB to be independent supervisor of banks in Europe.

UBS analysts are bearish: “There is a strong support at 0.8445 - a closing break below this would be an important bearish development”, wrote analyst Gareth Berry, pointing to resistance at 0.8561 ahead of 0.8602.

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