EUR/GBP erases gains, drops back toward daily lows
|EUR/GBP pulled back during the American session and erased all gains. The pair is trading at 0.8415/20, slightly above Asian session lows.
EUR unable to hold
The euro jumped earlier today after the release of Eurozone inflation data, that showed higher-than-expected numbers. EUR/GBP peaked at 0.8461. Then it consolidated between 0.8435 and 0.8455 before breaking to the downside on American hours. So far, the recent decline has been capped above 0.8410 (daily low).
The pair is still higher compared to the level it closed a week ago. It still has a bullish gap (between last Friday’s closing price and the weekly opening). The euro opened the week sharply higher following French presidential elections.
UK Q1 2017 prelim GDP grows at the slowest rate since Q1 2016
Eurozone: Stronger than expected preliminary April CPI numbers – BBH
EUR/GBP technical outlook
The pair is testing the short-term support area at 0.8410, a break lower would expose 0.8400. Below, the pair could attempt to close the mentioned gap with a decline to 0.8370. The key medium-term support could be seen around the 0.8300 handle.
On the opposite direction, resistance might be located at 0.8460 (daily high / Apr 17 low), 0.8510 (Apr 6 low / Apr 24 high) and 0.8530 (weekly high).
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