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FxWirePro: EUR/GBP bounces off 200-DMA support, pound dampened as UK inflation misses forecasts

Chart - Courtesy Trading View 

EUR/GBP was trading 0.35% higher on the day at 0.8469 at around 07:20 GMT, up from session lows at 0.8432.

The pair has bounced off major support at 200-DMA after the British pound was sold off as UK inflation missed forecasts.

The UK CPI rose to 9.0% YoY versus 9.1% expected whereas the Core CPI matched the 6.2% YoY forecast, compared to 5.7% prior.

Market sentiment remains sour amid fresh rise in China’s covid numbers and Shanghai’s refrain from total unlock.

Support levels - 0.8453 (21-EMA), 0.8441 (200-DMA), 0.8411 (110-EMA)

Resistance levels - 0.8472 (5-DMA), 0.85, 0.8522 (200H MA)

Summary: EUR/GBP pivotal at 200-DMA, decisive break below will plummet prices. Technical indicators support some weakness in the pair. 

Retrace above 200H MA at 0.8522 could change near-term bias. Breach below 200-DMA will see test of cloud support. 
 

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