FxWirePro: EUR/GBP tests channel support post EZ inflation data, short on break below 0.7330
Markets disappointed by below estimates Euro zone CPI figures, EUR bulls spooked by disappointing numbers. Euro zone Dec CPI data came in at 0.2%, the same seen in Nov, but below expectations for a 0.4% rise, while the C…
Markets disappointed by below estimates Euro zone CPI figures, EUR bulls spooked by disappointing numbers.
Euro zone Dec CPI data came in at 0.2%, the same seen in Nov, but below expectations for a 0.4% rise, while the Core CPI also matched the previous reading.
EUR/GBP slipped to daily lows struck near key support zone around 0.7330, but pared losses to trade at 0.7337.
Watchout for breaks below 0.7330 for further weakness, falls upto 0.7255 (38.2% Fib of 0.69841 to 0.7346 rise) then likely.
10-DMA at 0.7356 is immediate resistance on the upside, while 0.7330 which is rising channel base is strong support on the downside.
Recommendation: Short EUR/GBP on breaks below 0.7330, SL: 0.7370, TP: 0.7275/0.7255
