FxWirePro: EUR/GBP extends gradual grind lower along 5-DMA, bias lower, stay short

• EUR/GBP is extending a gradual grind lower along 5-DMA, bias remains lower.
   
• The pair is on track to test 100-DMA at 0.8573 and finds next major support by daily cloud at 0.86 level.
   
• GBP spiked after UK inflation overshot expectations in February, the pound sterling is trading well into the Article 50 announcement next Wednesday.
   
• Technicals are bearish, Stochs and RSI are biased lower and MACD is showing a bearish crossover. Break above 5-DMA at 0.8659 could see reversal.
   
• Cloud top at 0.86 is immediate support. Violation there could see test of 100-DMA at 0.8573.
   
• Focus remains on UK retail sales data due ahead in the European session.

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-capped-below-5-DMA-good-to-go-short-on-rallies-598529) is progressing well.

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 9.49818 (Neutral), while Hourly GBP Spot Index was at 123.724 (Bullish) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.