FxWirePro: EUR/GBP struggles to extend previous session's gains, 55-EMA offers stiff resistance

EUR/GBP chart - Trading View 

Spot Analysis:

EUR/GBP was trading 0.03% lower on the day at 0.8621 at around 04:20 GMT

Previous Session's High/ Low: 0.8638/ 0.8588

Previous Week's High/ Low: 0.8645/ 0.8565

Fundamental Overview:

ECB releases its decision at 11:45 GMT. The central bank is expected to keep the benchmark rate unchanged at 0.0%. The Deposit Rate and bond purchases are also likely to be kept intact. 

Macro economic fundamentals are yet to justify the sustained eurozone recovery from a pandemic. Focus remains on the bank's economic outlook. 

UK-EU tensions weigh on the pound, as bith sides failed to reach an agreement on implementing the Northern Ireland Protocol. 

British PM Boris Johnson is considering all options amid an emerging trade war after Brussels threatens to impose sanctions over the UK's exports to NI.

Technical Analysis:

- EUR/GBP trades with a neutral bias, GMMA indicator shows major and minor trend are neutral

- Price action remains capped at 55-EMA and daily cloud which are offering stiff resistance

- Oscillators are in neutral territory, RSI is flat and holds above 50 mark

- MACD is below the zero line, ADX is inconclusive

Major Support and Resistance Levels:

Support - 0.8612 (21-EMA), 0.8603 (5-DMA), 0.8571 (Lower BB)

Resistance - 0.8631 (55-EMA), 0.8650 (23.6% Fib), 0.8689 (110-EMA)

Summary: EUR/GBP struggles to extend previous session's gains. Focus on ECB policy meeting for impetus. Breakout above cloud will provide clear directional bias.