- EUR/GBP edges higher for the 4th successive session, trades 0.19% higher on the day.
- The pair is hovering around 21-EMA at 0.8814, breakout to see further upside.
- Indicators on intraday charts have turned bullish. We see scope for test of 200-DMA at 0.8846.
- Violation at 200-DMA will take the pair higher. While on the downside, break below trendline at 0.8785 will see resumption of downside.
- Markets focus on EZ GDP, German CPI data due later today for further impetus.
- Analysts are forecasting 0.6% EU GDP growth over the previous quarter and a 2.6% increase over the same period last year.
- Consensus forecast for German CPI calls for a 1.6% increase over the previous annual period.
Support levels - 0.88, 0.8772 (5-DMA), 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally)
Resistance levels - 0.8814 (21-EMA), 0.8826 (20-DMA), 0.8846 (200-DMA)
Recommendation: Good to go long on breakout above 21-EMA, SL: 0.8770, TP: 0.8845/ 0.89/ 0.8920
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -72.3728 (Neutral), while Hourly GBP Spot Index was at -108.385 (Bearish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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