- EUR/GBP saw a huge dive overnight as the Euro slumped across the board as ECB minutes and poor data weighed.
- The ECB minutes showed members remain widely concerned over the risk of trade conflicts and the absence of sustainability in the inflation.
- Further EZ Industrial Production rose less than expected in February. Export Price Index rose 0.3% MoM in March and Import Price Index came in flat.
- EUR/GBP is testing channel base support at 0.8660, breach there will see further weakness.
- Technical studies are also biased lower, we see scope for test of 78.6% Fib at 0.8513.
- Focus now in German inflation data for further impetus.
Support levels - 0.8660 (channel base), 0.86, 0.8513 (78.6% Fib)
Resistance levels - 0.8682 (61.8% Fib), 0.8695 (5-DMA), 0.8741 (21-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-below-5-DMA-eyes-channel-base-at-08675-stay-short-1233011) has hit TP1.
Recommendation: Book partial profits at lows. Trail SL to 0.87. Hold for further weakness.
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