FxWirePro: EUR/GBP consolidates break below 50-DMA, bias lower, stay short

• EUR/GBP is consolidating the break below 50-DMA at 0.9030 on Tuesday's session.
   
• The British pound spiked across the board after UK inflation data beat expectations.
   
• Headline consumer prices tracked by the CPI rose at an annualized 2.9% (vs. 2.8% forecasted).
   
• Prices excluding food and energy costs rose above expectations 2.7% over the last twelve months.
   
• On a monthly basis, consumer prices also rose more than initially estimated 0.6%, sharply reverting July’s 0.1% contraction.
   
• Technical studies for the pair are bearish, we see scope for further downside.
   
• On weekly charts, upside remains capped below weekly 5-SMA. Stochs and RSI have turned lower from overbought levels.
   
• Immediate support on the downside lies at 0.8920 (38.2% Fib), while 50-DMA at 0.9034 is immediate resistance.

Support levels - 0.8952 (cloud top), 0.8920 (38.2% Fib retrace of 0.8297 to 0.9306 rally), 0.8870 (trendline)

Resistance levels - 0.9034 (50-DMA), 0.9076 (5-DMA), 0.9132 (weekly 5-SMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Pound-upside-picks-up-pace-after-upbeat-UK-inflation-data-EUR-GBP-breaks-50-DMA-at-09030-to-hit-6-week-lows-at-09003-894167) is progressing well.

Recommendation: Hold for downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 16.56 (Neutral), while Hourly GBP Spot Index was at 106.415 (Bullish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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