FxWirePro: EUR/GBP on track to retake 0.79 handle, buy dips, target 0.7945

• EUR/GBP has taken trendline support at 0.7850 and edged higher, but we do not see scope for much upside.
   
• The pair is flirting with highs near 0.7900, breaks above to target 0.7946 (Mar 24th highs).
   
• Three-month implied volatility gauge rose to almost six-year high last week, indicating investors are bracing up for a sharp swings. 
   
• Brexit risks will keep GBP weak vs its peers. Also, as the domestic economy has lost some momentum the BoE is likely to remain on hold until Q4.
   
• Due later the European session, EMU’s advanced inflation figures for March will be in focus, while UK’s Q4 GDP figures are also expected.
   
• After yesterday’s higher-than-expected German CPI, market consensus now sees core consumer prices in the region rising at an annual pace of 0.9% vs. February’s 0.8% gain.

Recommendation: Good to buy dips around 0.7890, SL: 0.7850, TP: 0.7945/0.7970

Resistance Levels:

R1: 0.79

R2: 0.7910 (Mar 25th highs)

R3: 0.7933 (Mar 23rd highs)

Support Levels:

S1: 0.7875 (5-DMA)

S2: 0.7850 (Rising trendline)

S3: 0.7835 (Mar 30th lows)