FxWirePro: EUR/GBP trades in narrow range, focus on UK CPI data

• EUR/GBP rangebound in the European session as markets await crucial inflation data due ahead.
   
• The pair is hovering around key support by 200-DMA at 0.8444. Violation there could see test of 0.83 (Dec 5 lows).
   
• Forecasts for CPI are as follows: CPI likely to have risen 1.9% y/y, while Core prices are seen gaining 1.8% y/y.Month-over-month, CPI is expected to have contracted 0.5%.
   
• Momentum studies are neutral with slightly bearish bias. Break below 200-DMA could accentuate weakness.
   
• Heightened political uncertainty in the euro area and resurgence in Greece crisis keeps EUR subdued.
   
• Upbeat data could see slump in the pair, while disappointment could see momentary upswings.
   
• Focus also remains on Eurozone Q4 GDP data due later in the European session.
   

Support levels - 0.8444 (200-DMA), 0.84, 0.8333 (Sept 6, 2016 low)

Resistance levels - 0.8498 (5-DMA), 0.8533 (50-DMA), 0.8556 (20-DMA) 

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                Neutral       
4H          Bearish               Neutral       
1D          Neutral                Neutral        
1W         Bearish               Neutral      

Recommendation: Good to go short on break below 200-DMA at 0.8444, SL: 0.85, TP: 0.84/ 0.8335

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -35.0313(Neutral), while Hourly GBP Spot Index was at 36.2048 (Neutral) at 0728 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.