FXstreet.com (Barcelona) - The EUR/GBP found resistance at 0.7985 yesterday and has been retracing all the European/American sessions up move seen on Tuesday. The cross dropped as low as 0.7940 in the London morning, and after a short bouncing moment, the market is testing that support again.
The preliminary release of the Germany CPI inflation report came in as expected, with the annualized headline figure dropping to +2.0% (HICP to +2.1%) and by 0.0% (HICP by 0.0%) in the monthly basis in September. In regard to the economic calendar, the UK saw its CBI realized distributive trades in September rising by +6%, from a -3% drop in August. Market consensus was pointing to +5%.
“The ‘doji’ charted here (0.7935) implies that it is likely that the move lower has terminated for now ahead of the 2 month uptrend at 0.7899”, wrote Commerzbank analyst Karen Jones, pointing to initial resistance lies at 0.8007 and key resistance at 0.8113/57.
The preliminary release of the Germany CPI inflation report came in as expected, with the annualized headline figure dropping to +2.0% (HICP to +2.1%) and by 0.0% (HICP by 0.0%) in the monthly basis in September. In regard to the economic calendar, the UK saw its CBI realized distributive trades in September rising by +6%, from a -3% drop in August. Market consensus was pointing to +5%.
“The ‘doji’ charted here (0.7935) implies that it is likely that the move lower has terminated for now ahead of the 2 month uptrend at 0.7899”, wrote Commerzbank analyst Karen Jones, pointing to initial resistance lies at 0.8007 and key resistance at 0.8113/57.
