FxWirePro: EUR/GBP trades in narrow 11 pip range, caution ahead of ECB policy meeting

• EUR/GBP is trading an extremely narrow, 11-pip range as we head into the European session.
   
• Technical studies are pointing to a bearish bias. The major stays capped below downside biased 5-DMA.
   
• Markets wary ahead of the ECB monetary policy announcement as they wait for cues on further direction.
   
• Markets are expecting the ECB Chief Draghi to refrain from EUR jawboning, and to leave the policy settings unchanged.
   
• The rhetoric to follow will be keenly watched and fresh hints on the QE tapering plans would be viewed as a major policy shift towards a hawkish narrative and push the EUR higher.
   
• Ahead of the ECB decision, the single currency will take some cues from the German industrial production and Eurozone final Q2 GDP revision.
   
• Major resistance lies at 20-DMA at 0.9169 and major support lies at 0.9088 (23.6% Fib retrace of 0.83822 to 0.93064 rally).

Support levels - 0.9088 (23.6% Fib retrace of 0.83822 to 0.93064 rally), 0.9012 (50-DMA), 0.8953 (38.2% Fib)

Resistance levels - 0.9152 (5-DMA), 0.9169 (20-DMA), 0.92, 0.9226 (Sept 4 high)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -3.41029 (Neutral), while Hourly GBP Spot Index was at 117.734 (Bullish) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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