FxWirePro: EUR/GBP breaks major support at 0.7830, focus on UK CPI data

• GBP strengthens ahead of inflation data. Shorts squeezed amid growing support for anti-Brexit camp and strengthening oil prices.
   
• Focus remains on the much-awaited UK inflation report, which is due to be published at 8.30GMT. Expectations are as follows:
  
  - UK consumer prices are expected to have risen 0.5% in April from a year earlier, the fastest pace in 15 months and the same pace as in March. 
  
  - While core figures, excluding volatile food and fuel costs, should book 1.4% after the 1.5% rate in March.
   
• A weaker-than-expected headline and core CPI print could trigger a fresh sell-off in GBP. 
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• On the other hand, a better-than-expected data could see continuation of ongoing bullish momentum around the GBP.
   
• On the Technical side, EUR/GBP has broken major support at 0.7830, and trades with a strong downside bias.
   
• Price action has dipped below the cloud and 5&10 DMAs have turned lower. Stoch, RSI and MACD support downside.
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Recommendation: Sell EUR/GBP on break below 0.78 handle, SL: 0.7850, TP: 0.7760/0.7735