EUR/GBP Capped Below 0.7800, Awaits German CPI

EUR/GBP Capped Below 0.7800, Awaits German CPI

28 April 2016, 07:57
Roberto Jacobs

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).


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