- The single currency muted to downbeat German economic sentiment for June which came in at 18.6 vs. 21.5 forecasted.
- Some stabilization seen in the sterling for the moment as a formal agreement with the DUP is negotiated.
- Data released earlier today showed UK consumer price inflation came in at 2.9%, well ahead of the 2.7% consensus.
- Tomorrow’s labour report along with this week’s retail sales report will be in focus.
- Bank of England is expected to tread carefully amid political and economic uncertainty.
- EUR/GBP has paused upside at 61.8% Fib at 0.8870, bias remains bullish as long as pair holds above 5-DMA at 0.8757.
Support levels - 0.8761 (50% Fib), 0.8757 (5-DMA), 0.8695 (20-DMA)
Resistance levels - 0.8852 (Jan 16 high), 0.8870 (61.8% Fib), 0.90 (76.8% Fib)
Recommendation: Good to go long on dips around 0.8760, SL: 0.8695, TP: 0.88/ 0.8850/ 0.89
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 5.17928 (Neutral), while Hourly GBP Spot Index was at -30.2659 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
