- The second estimate of UK GDP for Q1 2017 saw growth revised down to 0.2% q/q from the previous estimate of 0.3%.
- The downward revision in today’s report suggested that economic growth decelerated sharply in the early stages of the year.
- EUR/GBP is extending consolidation after the pair broke above major resistance at 0.8595 (200-DMA and trendline) on Monday's trade.
- Momentum indicators on weekly charts are biased higher. The pair has broken above weekly 50-SMA at 0.8534.
- Near-term reversal in trend likely on close below 200-DMA at 0.8595.
Support levels - 0.8634 (5-DMA), 0.8595 (200-DMA), 0.8516 (23.6% Fib of 0.92253 to 0.82970 fall), 0.8517 (20-DMA)
Resistance levels - 0.87, 0.8735 (Mar 29 high), 0.87861 (50% Fib of 0.92253 to 0.82970 fall)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-breaks-200-DMA-at-08595-good-to-go-long-on-dips-714647) has hit TP1.
Recommendation: Bias higher as long as 5-DMA support holds. Stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -2.49026 (Neutral), while Hourly GBP Spot Index was at -116.499 (Bearish) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
