FxWirePro: EUR/GBP recovery fails to build momentum, Euro suppressed ahead of ECB policy meet

EUR/GBP chart on Trading View used for analysis 

• EUR/GBP trades 0.17% lower on the day at 0.8585 at 1250 GMT.
   
• Euro unchanged despite small improvement in Sentix index for the current month, rebounding to -2.2 from February’s -3.7. 
   
• The pair has been rejected at 5-W SMA. Price action has slipped below 110-W EMA and has retraced below 23.6% Fib.
   
• Technical studies support weakness on daily and weekly charts. Stochs and RSI are sharply lower.
   
• Bullish divergence on RSI and Stochs seen on daily charts raises scope for further upside.
   
• Decisive break above 5-DMA to see further upside. Scope for test of 23.6% Fib.
   
• Focus now on the ECB policy meeting. The ECB is expected to remain in ‘pause mode’ for the foreseeable future amidst the ongoing slowdown in the region.

Support levels - 0.8528 (Feb 27 low), 0.85, 0.8374

Resistance levels - 0.86, 0.8682 (21-EMA), 0.8702 (20-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.