FxWirePro: EUR/GBP extends weakness below 5-DMA, focus on Eurozone inflation data

• EUR/GBP extends weakness for 3rd successive session, trades 0.08% lower on the day.
   
• The UK manufacturing PMI rose while the gauge for the Eurozone decelerated sharply in March weighing on the pair.
   
• Technical studies are biased lower and we see scope for further downside in the pair.
   
• Next major support on the downside aligns at 0.8675 (channel base). Breach at channel base could see further weakness.
   
• On the flipside, 20-DMA at 0.8788 is immediate resistance. Break above could see minor upside.
   
• Markets now focus on the flash inflation reading for March in the Eurozone which will be the main driver.

Support levels - 0.8682 (61.8% Fib), 0.8675 (channel base), 0.86

Resistance levels - 0.8751 (5-DMA), 0.8788 (20-DMA), 0.8819 (50-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-below-5-DMA-eyes-channel-base-at-08675-stay-short-1233011) is progressing well.

Recommendation: Hold for targets.

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