FXWIREPRO: EUR/GBP Struggles at the 0.80 Handle, Focus on Uk Inflation Data

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