FxWirePro: EUR/GBP capped below 50-DMA (0.8874), bias lower, good to short rallies

• EUR/GBP trades in an extremely narrow range on the day, remains capped below 50-DMA at 0.8874.
   
• Market ignores downbeat comments on the economic outlook and Brexit process from BOE policymaker Ramsden.
   
• Latest reports suggesting that the UK is preparing to increase its offer for the so-called EU divorce bill keep GBP supported.
   
• Investors now focus on the BOE’s inflation report hearings scheduled later today.
   
• Further UK’s fiscal budget, which will be announced by the UK Finance Minister Hammond on Wednesday will also be watched.
   
• Technical studies are bearish, RSI below 50 levels, Stochs are biased lower and MACD is on verge of bearish crossover on signal line.

Support levels - 0.8801 (50% Fib), 0.8746 (Sept 27 low), 0.8733 (Nov 1 low)

Resistance levels - 0.8863 (20-DMA), 0.8874 (50-DMA), 0.8901 (5-DMA)

Recommendation: Good to go short around 0.8860/65, SL: 0.8920, TP: 0.88/ 0.8750.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -33.5327 (Neutral), while Hourly GBP Spot Index was at 40.768 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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