0.7330 strong support EUR/GBP, weakness only on breaks below
Markets disappointed by below estimates Euro zone CPI figures, EUR bulls spooked by disappointing numbers.
Euro zone Dec CPI data came in at 0.2%, the same seen in Nov, but below Reuters forecasts for a 0.3% rise, core CPI slips to 0.8% from 0.9% in the previous month.
EUR/GBP slipped to hit daily lows near key support zone around 0.7330, but pared losses to trade at 0.7337.
10-DMA at 0.7356 is immediate resistance on the upside, while 0.7330 which is rising channel base is strong support on the downside.
Break below 0.7330 will find the pair by next support at 0.7320 (23.6% Fib of 0.69841 to 0.7346 rise) ahead of 0.7255 (38.2% Fib of 0.69841 to 0.7346 rise).
On the other side, if the pair manages to close above 5-DMA at 0.7361, retracements upto 0.7388 (Dec 30 highs) and then 0.74 levels likely.
Technicals point lower, we would go short EUR/GBP on breaks below 0.7330, SL: 0.7370, TP: 0.7275/0.7255
However, close above 0.7362 invalidates bearish view.
Euro zone Dec CPI data came in at 0.2%, the same seen in Nov, but below Reuters forecasts for a 0.3% rise, core CPI slips to 0.8% from 0.9% in the previous month.
EUR/GBP slipped to hit daily lows near key support zone around 0.7330, but pared losses to trade at 0.7337.
10-DMA at 0.7356 is immediate resistance on the upside, while 0.7330 which is rising channel base is strong support on the downside.
Break below 0.7330 will find the pair by next support at 0.7320 (23.6% Fib of 0.69841 to 0.7346 rise) ahead of 0.7255 (38.2% Fib of 0.69841 to 0.7346 rise).
On the other side, if the pair manages to close above 5-DMA at 0.7361, retracements upto 0.7388 (Dec 30 highs) and then 0.74 levels likely.
Technicals point lower, we would go short EUR/GBP on breaks below 0.7330, SL: 0.7370, TP: 0.7275/0.7255
However, close above 0.7362 invalidates bearish view.