EUR/GBP Price Analysis: Bounces off 100-HMA on unimpressive UK inflation
|- EUR/GBP takes the bids to refresh intraday high after UK inflation data.
- UK CPI matches YoY forecasts, Core CPI eases in May.
- Weekly symmetrical triangle challenges immediate moves, RSI hints at the further upside.
EUR/GBP regains upside momentum on mixed UK inflation data during early Wednesday morning in Europe. In doing so, the cross-currency pair takes the bids to refresh daily top around 0.8590 by the press time.
UK’s Consumer Price Index (CPI) matches 9.1% YoY forecasts versus 9.0% prior. However, the Core CPI dropped to 5.9%, below 6.0% market consensus and 6.2% previous readouts.
Read details: Breaking: UK annualized inflation rises by 9.1% in May vs. 9.1% expected
Technically, the quote bounced off the 100-HMA following the inflation data, staying inside a one-week-old symmetrical triangle.
Given the EUR/GBP pair’s latest rebound from the short-term key moving average, backed by data, the upside momentum is likely to poke the resistance line of the stated triangle, near 0.8600.
It’s worth noting that the firmer RSI adds strength to the recovery moves, which in turn could propel the prices towards Friday’s peak of 0.8635 ahead of highlighting the monthly high near 0.8720.
Meanwhile, pullback moves need validation from the 100-HMA level of 0.8577, a break of which could drag EUR/GBP prices towards the support line of the mentioned triangle, at 0.8565 by the press time.
If the pair declines below 0.8565, the previous weekly low near 0.8510 and the monthly bottom surrounding 0.8485 will be in focus.
EUR/GBP: Hourly chart
Trend: Limited upside expected
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