EUR/GBP erases gains, drops back toward daily lows

Matías Salord FXStreet

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).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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