FxWirePro: EUR/GBP grinds lower, single currency under pressure ahead of German inflation data

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.17% lower on the day at 0.8531 at around 10:20 GMT, after closing largely unchanged in the previous session.

Common currency under pressure ahead of German inflation data. Chatters of reflation fears and the ECB’s bond purchase moves also keep pressure on the euro.

Focus on the preliminary reading of Germany’s March month Harmonized Index of Consumer Prices (expected 2.0% YoY versus 1.6% prior). 

Also of relevance is the Eurozone Consumer Confidence for March, expected to remain unchanged at 10.8%, as well as Business Climate figures for the said month.

Technical indicators for the pair are strongly bearish. Major and minor trend are bearish. Momentum with the bears.

Support levels - 0.8521 (Lower BB), 0.85, 0.8415 (88.6% Fib)

Resistance levels - 0.8563 (5-DMA), 0.8581 (200H MA), 0.8592 (21-EMA)

Summary: EUR/GBP trades with a strong bearish bias and is on track to test 88.6% Fib and trendline support at 0.84 levels. 21-EMA is strong resistance. Decisive break above could buoy bulls in the near-term.