FxWirePro: EUR/GBP extends bounce off 200-DMA support

Chart - Courtesy Trading View 

EUR/GBP was trading 0.41% higher on the day at 0.8491 at around 16:10 GMT.

The pair has slipped lower from session highs at 0.8499, scope for further gains above 0.85 handle.

In its quarterly publication released on Thursday, the European Commission slashed Euro area GDP forecast to 2.6%, down from 2.7% in previous outlook.

The European Commission now sees euro area inflation at 7.6% in 2022, up from 6.1% in previous outlook.

The quarterly forecasts have little to no impact on the shared currency, as EUR/GBP continues to push higher.

Price action has bounced off 200-DMA support and weakness only on break below. A Golden Cross also limits downside in the pair.

Support levels - 0.8479 (110-EMA), 0.8457 (5-DMA), 0.8439 (200-DMA)

Resistance levels - 0.8511 (55-EMA), 0.8524 (21-EMA), 0.8552 (20-DMA)

Summary: EUR/GBP is on track for more upside. Scope for test of 55-EMA at 0.8511. Break above cloud will support further gains.