FxWirePro: EUR/GBP rangebound below 5-DMA, bias lower, stay short

• EUR/GBP is trading a narrow range on the day, bias remains lower.
   
• The pair is extending declines from major trendline resistance at 0.8780 and is on track to test 100-DMA at 0.8573.
   
• GBP spiked after UK inflation overshot expectations in February coming in at 2.3% y/y (exp. 2.1% y/y).
   
• The pound sterling is trading well into the Article 50 announcement next Wednesday.
   
• Upside risks for the pair remain as the Euro remains underpinned by various opinion polls, showing Macron leading the French presidential election race.
   
• 5-DMA at 0.8676 caps upside in the pair, break above could see revresal.
   
• Technicals are bearish, Stochs and RSI are biased lower and MACD is showing a bearish crossover.
   
• Cloud top at 0.86 is immediate support. Violation there could see test of 100-DMA at 0.8573.
   
• Focus on Eurozone current account data for further impetus in the pair.

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 34.0518(Neutral), while Hourly GBP Spot Index was at 103.676 (Bullish) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.