FXWIREPRO: EUR/GBP Struggles at the 0.80 Handle, Focus on Uk Inflation Data
- EUR/GBP is extending downside from fresh 20-month highs at 0.8117 hit on April 7th.
- The pair is seen trading a rising channel since Jan 2016, and on the day is struggling at the 0.80 handle.
- Upside for now seems to have stalled, moving averages are turning south indicating some shift in trend.
- Momentum has turned bearish on the daily charts with Stochs rolling over from overbought with a bearish crossover and RSI bouncing back from just over 70 levels.
- Tight range trade seen on the day, with highs at 0.8021 and lows at 0.8004.
- Markets focus remains on UK inflation data ahead of Thursday's BoE policy meeting.
- Expectations are for the central bank to unanimously keep interest rates on hold, anything other than a 9-0 vote will be a major surprise.
- On the inflation front today, market anticipate stronger consumer price figure, March consumer price is expected to rise 0.3 pct, as compared to previous 0.2 pct in February.
- The U.K gilts slumped on Monday as market anticipate stronger consumer price figure on Tuesday and awaits the Bank of England MPC policy rate decision and statement on Thursday.
Recommendation: Short EUR/GBP on breaks below 0.80, SL: 0.8050, TP: 0.7960/0.7930/0.78
The material has been provided by InstaForex Company - www.instaforex.com