FxWirePro: EUR/GBP confined to narrow 15 pip range, UK retail sales data in focus
Thursday, October 20, 2016 6:53 AM UTC
- EUR/GBP has been confined to a narrow 15 pip range in the Asian session.
- UK retail sales data will be the last major release before the first estimate of GDP growth in Q3 is due next week.
- Markets will look forward to see if retails sales for Sept confirm latest British Retail Consortium/KPMG data which reported retail sales rebounded by 1.3% y/y in Sept.
- The pair finds stiff resistance at 0.90 levels, bias remains lower below 5-DMA at 0.8962.
- Technical indicators on daily charts support downside, Stcohs, RSI and MACD support bears.
- Major support levels - 0.8930 (hourly 20-SMA), 0.8848 (20-DMA), 0.8820 (trendline)
- Major resistance levels - 0.8963 (5-DMA), 0.8970 (trendline), 0.9030 (Oct 18 high)
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-finds-stiff-resistance-at-090-trades-narrow-range-ahead-of-UK-unemployment-data-355288) has achieved TP1.
- Book partial profits, bias lower, stay short, bearish invalidation only above 0.90 levels.