FxWirePro: EUR/GBP trades a narrow 23 pip range ahead of UK construction PMI and ECB

• EUR/GBP trades a narrow 23 pip range, caution prevails ahead of crucial risk events - UK construction PMI and ECB.
   
• UK construction PMI is expected to stay in expansion at 52.6, slightly better than the previous 52.0 result.
   
• A downside surprise cannot be ruled out given softer growth forecasts for the UK economy alongside uncertainty ahead of the EU referendum.
   
• PMI reading matching or better expectations could see EUR/GBP slip to 0.77 and then 0.7680. Contrarily, disappointing result should see upside upto 0.7795 and 0.78 levels.
   
• Markets are expecting ECB to keep the monetary policy unchanged, with the deposit rate steady at -0.40%. 
   
• However the central bank is expected to announce the first upward revision to the inflation forecasts since the asset purchasing began in January 2015. 
   
• Our previous call (http://www.econotimes.com/FxWire-Pro-EUR-GBP-edges-above-077-handle-on-track-to-test-100-DMA-at-07792-215680) has achieved TP1. 
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Recommend exiting trade at highs ahead of major risk events. Enter fresh longs only on close above 0.7795.