EUR/GBP Capped Below 0.7800, Awaits German CPI
The cross in the EUR/GBP eases slightly from highs just shy of 0.78 handle, although remains better bid amid modest gains seen in the EUR/USD pair.
EUR/GBP: German CPI in focus
Currently,
the EUR/GBP pair trades 0.06% higher at 0.7790, unable to take-out 0.78
barrier. The cross consolidates the previous rally as dust settles
after the Fed and BOJ aftermath. While both central bankers’ stood pat
at its respective policy announcements, the US dollar suffered heavily,
especially after the BOJ’s downside surprise, benefiting both the EUR
and GBP.
In the day ahead, the cross is expected to get
influenced by the German prelim CPI figures, after which the US advance
GDP report will provide further impetus to the prices.
EUR/GBP Technical Levels
To
the upside, the next resistance is located at 0.7800/11 (round figure/
daily R1), above which it could extend gains to 0.7827/44 (10-DMA/ 1h
200-SMA). To the downside immediate support might be located at 0.7731
(six-week lows) below that at 0.7700 (round number).
