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

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Talking Points

  • EURGBP approaching technical support- Broader outlook remains bearish
  • Updated targets & invalidation levels
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EUR/GBP Daily

Technical Outlook: EURGBP is attempting to break below the monthly opening-range lows with the decline approaching some key confluence-support targets of interest at 8454 & 8408 . This zone is littered with Fibonacci considerations as well as the 200-day moving average and slope support. A break below this threshold would likely see accelerated losses for the pair with such a scenario targeting support objectives at 8349 and the 100% extension at 8262 . Resistance stands at the monthly open backed by broader bearish invalidation at 8627 .

EUR/GBP 12 0min

Notes: A closer look at price action highlights a quick fill of the Sunday-open gap before continuing lower and keeps the focus on upcoming support targets at 8454 & key support at 8390-8408. Ultimately we are looking for the break of this support but in the meantime, shorts should use caution.

Interim resistance stands at 8530 backed by 8582 with a breach above the upper parallel (grey) / 8627 needed to invalidate the broader decline off the January highs. A quarter of the daily average true range (ATR) yields profit targets of just 19-21 pips per scalp. Keep in mind UK CPI is on tap tomorrow with consensus estimates calling for a headline print of 1.9%, up from 1.6% (would be the highest since June 2014). Core inflation is expected to rise to 1.7% and would mark the highest pace of price growth since August of 2014. From a trading standpoint, I would be looking for a reaction into these upcoming key support targets with any strength towards structural resistance on data to be viewed as an opportunity for re-entry.

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Clic k H ere to be added to his email distribution list .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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