EUR/GBP analysis for May 13, 2021

Looking at the chart on the four-hour time frame, we see that the pound is stronger against the Euro and slowly moves into a bearish scenario. For now, we find current support at 61.8% Fibonacci level at 0.85560. We have a shorter withdrawal again in the zone of 23.6-38.2% higher Fibonacci level. We can also place a smaller Fibonacci on the chart and, based on it, monitor the next potential rejection and continuation of the bearish trend. As a place for potential continuation on the bearish side, it is 61.8% to 0.86450. Of the moving averages, only MA20 is on the bullish side while the others are on the bearish side and represent resistance to the higher targets on the chart. Looking at the MACD indicator, the signal is pure bulls, which with Fibonacci gives us as much solid support for the shorter growth of the EUR/GBP currency pair.
For the EUR/GBP currency pair, we can single out the following economic news: House prices in the UK rose in April as demand growth increasingly outpaced supply. The monthly survey by the Royal Institution of Chartered Surveyors (RICS) showed on Thursday. The house price balance rose to 75 percent in April from 62 percent in March. All regions showed a sharp rise in house price inflation. In the first quarter, the British economy slowed as school closures and a sharp drop in retail sales earlier that quarter pulled growth, the Office for National Statistics reported on Wednesday. Gross domestic product fell 1.5 percent, reversing the growth of 1.3 percent in the fourth quarter. Economists forecast a sequential decline of 1.6 percent. The economy shrank again in the first quarter after growing for two consecutive quarters. On an annualized basis, GDP fell 6.1 percent, as expected in the first quarter. The level of GDP was 8.7 percent below the level before the pandemic in the fourth quarter of 2019.