FxWirePro: EUR/GBP refreshes weekly high above 0.89 handle, upbeat UK Retail Sales fail to impress

Chart - Courtesy Trading View 

EUR/GBP was trading 0.13% higher on the day at 0.8907 at around 11:45 GMT, extends gains for the 3rd straight session.

Upbeat UK Retail Sales for January fail to impress the GBP bulls, the cross builds on this week's goodish bounce.

Data published by the UK Office for National Statistics showed that domestic Retail Sales grew 0.5% in January beating consensus estimates for a 0.3% fall. 

Furthermore, core sales (excluding fuel) also surpassed market expectations and rose by 0.4% during the said month.

The British pound continues to be weighed down by expectations that the Bank of England's (BoE) current rate-hiking cycle might be nearing the end.

On the other side, bets for additional jumbo rate hikes by the European Central Bank (ECB) might contribute to the Euro's relative outperformance.

EUR/GBP has bounced off 55-EMA support, the pair has broken above 21-EMA, near-term moving averages have turned bullish.

MACD is on verge of bullish crossover on signal line, ADX supports upside in the pair. GMMA indicator shows major and minor trend are bullish. 

Major Support and Resistance Levels:

Support levels - 0.8865 (5-DMA), Resistance levels - 0.8978 (Feb 23rd high)

Summary: EUR/GBP has slipped lower from session highs at 0.8928, technical bias remains bullish. Scope for retest of monthly highs at 0.8978. Weakness only below 21-EMA.