FxWirePro: EUR/GBP recovery capped at 21-EMA, sideways grind likely as markets await BoE policy decision

EUR/GBP chart - Trading View 

EUR/GBP was trading in an extremely narrow range with session high at 0.9038 and low at 0.9021.

Recovery in the pair was capped at 21-EMA, break above required for further upside.

The UK government is under scrutiny for its management of the coronavirus crisis. Hopes of further stimulus from the UK likely to underpin the pound.

Markets cautious ahead of the UK Services PMI. The second reading of the UK Services PMI for July is expected to confirm 56.6 initial forecast.

Focus also on Eurozone Services PMI and Retail Sales data for June for further impetus. 

The pair trades in a 'Symmetric Triangle' pattern and break above 21-EMA will see test of Triangle top at 0.9125. 

On the flipside, failure at 21-EMA and breach below Triangle base will plummet prices further.

Support levels - 0.8994 (55-EMA), 0.8914 (110-EMA)

Resistance levels - 0.9040 (21-EMA), 0.9085 (50% Fib)