FxWirePro: EUR/GBP Rangebound ahead of EZ Inflation Data, Momentum Studies Bearish

FxWirePro: EUR/GBP Rangebound ahead of EZ Inflation Data, Momentum Studies Bearish

18 May 2016, 09:42
Roberto Jacobs
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FxWirePro: EUR/GBP Rangebound ahead of EZ Inflation Data, Momentum Studies Bearish

  • EUR/GBP trades a tight range on the day, with day's highs at 0.7831 and lows at 0.7813. 
  • Single currency remains under pressure ahead of the Euro zone CPI data, with markets expecting the core figures to soften in March. 
  • Technical indicators favour downside in the pair, 0.7790 is major trendline support, break below will see drag upto 0.7728 (110 EMA). 
  • Upside finds major trendline resistance (currently at 0.7880). Multiple rejections evidenced at trendline. 
  • Break above 0.7880 can see next resistance at 0.7928 (bouble top Feb 26th and May 9th).

Recommendation: Go short on break below 0.7790, SL: 0.7840, TP: 0.7735/0.77 

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