EUR/GBP Approaching Key Support Targets– 8400 in Focus Ahead UK CPI

Talking Points

  • EURGBP coming technical support- Broader opinion stays bearish
  • Updated targets cancellation levels
  • Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)


EURGBP Daily Chart

Technical Outlook: EURGBP is attempting to mangle next a monthly opening-range lows with a decrease coming some pivotal confluence-support targets of seductiveness during 8454 8408. This section is dirty with Fibonacci considerations as good as a 200-day relocating normal and slope support. A mangle next this threshold would approaching see accelerated waste for a span with such a unfolding targeting support objectives during 8349 and a 100% prolongation during 8262. Resistance stands during a monthly open corroborated by broader bearish cancellation during 8627.

EUR/GBP 120min

EURGBP 120min Chart

Notes: A closer demeanour during cost movement highlights a discerning fill of a Sunday-open opening before stability reduce and keeps a concentration on arriving support targets during 8454 pivotal support during 8390-8408. Ultimately we are looking for a mangle of this support though in a meantime, shorts should use caution.

Interim insurgency stands during 8530 corroborated by 8582 with a crack above a top together (grey) / 8627 indispensable to nullify a broader decrease off a Jan highs. A entertain of a daily normal loyal operation (ATR) yields distinction targets of only 19-21 pips per scalp. Keep in mind UK CPI is on daub tomorrow with accord estimates job for a title imitation of 1.9%, adult from 1.6% (would be a top given Jun 2014). Core acceleration is approaching to arise to 1.7% and would symbol a top gait of cost expansion given Aug of 2014. From a trade standpoint, we would be looking for a greeting into these arriving pivotal support targets with any strength towards constructional insurgency on information to be noticed as an event for re-entry.

Relevant Data Releases

EUR/GBP Approaching Key Support Targets– 8400 in Focus Ahead UK CPI

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—Written by Michael Boutros, Currency Strategist with DailyFX

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