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.