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- EUR/GBP confined to a narrow range in the Asian session.
- Price action within daily cloud, with cloud top offering strong resistance.
- Cautious tone prevalent in the markets, as all eyes remain focused on the UK inflation report.
- Major support levels - 0.84, 0.8392 (55-EMA), 0.8372 (Sept 7 low)
- Major resistance levels - 0.8442 (5-DMA), 0.8484 (double top Sept 9, 12), 0.85 (20-DMA & trendline)
- GBP remains subdued, EUR/GBP attempting breach above cloud top after German CPI meets forecasts.
Recommendation: Long EUR/GBP breakout above cloud top (0.8433), SL: 0.8390, TP: 0.8484/ 0.85
