19.03.201915:38 Forex Analysis & Reviews: EUR and GBP: Euro and pound buyers are struggling for important resistance levels. UK labor market is fine

Euro managed to reach the highs of yesterday and even updated them after good reports that came out in the first half of the day in Germany and the Eurozone. The growth of economic expectations and sentiments in the business environment will contribute to the gradual recovery of economic growth in the future.

According to the ZEW Research Center, the index of economic expectations in Germany in March of this year rose to -3.6 points from -13.4 points in February. The data were better than forecasts of economists, who expected the index in March to be -11.0 points.

ZEW noted that the improved sentiment of analysts and investors occurred against the background of the expected postponement of Brexit. Progress in the US and Chinese trade negotiations also added optimism.

As for the sentiment index in the business environment of the eurozone, it rose to -2.5 points in March, against -16.5 points in February of this year. Economists also expected a more modest growth, up to -15 points.

Good wage growth in the eurozone at the end of last year inspires hopes for a return of consumer activity and rising costs, which will accelerate the slow growth of the eurozone economy this year.

According to the European statistical agency Eurostat, hourly wages in the 4th quarter of 2018 increased by 2.3% compared to the same period of the previous year. A similar increase was observed in the 3rd quarter. This indicates an increase in real wages of the population since the average annual increase in consumer prices in the 4th quarter was 1.9%.

However, the report also indicates the reverse side of the coin. The European Central Bank uses a slightly different calculation of wages per employee. Right here, in the 4th quarter of this year, its growth slowed down from 2.3% to 1.7%.

As for the technical picture of the pair EURUSD, it has not changed compared to the morning forecast. An unsuccessful attempt to update yesterday's high indicates the completion of a short-term upward correction, which may lead to a decrease in the trading instrument to the support area of 1.1335, a breakthrough of which will lead to a larger sale of risky assets to the minima of 1.1300 and 1.1250.

The British pound responded with a slight increase to the data that the unemployment rate in the UK fell in January this year. However, a more detailed study of the report shows that the number of applications for unemployment benefits, on the contrary, increased in February.

According to the National Bureau of Statistics of the United Kingdom, the unemployment rate fell from November to January 2019 to 3.9% from 4.0% from October to December 2018. The average earnings in the period from November to January increased by 3.4%.

All this suggests that, despite the situation with Brexit, the UK labor market remains in force, and the weak pace of economic growth has not yet affected this figure.

Meanwhile, the number of claims for unemployment benefits in February of this year increased by 27,000, after rising by 15,000 in January. Economists had expected growth of only 13,000.

As for the technical picture of the GBPUSD pair, a large range for opening short positions can be traced around 1.3295-1.3330, where sellers will show themselves in the market. Under the pound decline scenario, a similar support range is located in the 1.3180-1.3220 area.