EUR/GBP heading for 0.8600 as daily declines continue unabated

The EUR/GBP set for another down day, an eighth daily decline out of the last nine.
EU HICP inflation continues to drain out of the Eurozone faster than markets expect.
Waffling price growth in Europe is pulling the rug out from beneath the Euro.

Joshua Gibson FXStreet

The Euro (EUR) continues to waffle against the Pound Sterling (GBP), down two-tenths of a percent as the EUR/GBP is set to see its ninth down day in the past ten trading sessions.

The EUR/GBP saw some back-and-forth trading on Thursday after Eurozone inflation figures missed the mark, causing the Euro to slide four-tenths of a percent peak-to-trough against the Pound Sterling. The EUR/GBP hit a fresh nine-week low of 0.8614 and is now trading into the low end for the day below 0.8650.

EU inflation continues to recede, hampering the Euro

Eurozone Core Harmonized Index of Consumer Prices (HICP) inflation broadly declined early Thursday, with November’s MoM printing at -0.6%, declining from October’s reading of 0.2%.

Eurozone annualized HICP inflation also came in below expectations, with YoY Core HICP printing at 3.6% against the forecast 3.9%, extending the decline from the previous period’s 4.2% as inflation continues to cool across the Eurozone.

The EUR/GBP rounds the corner into Friday’s trading session looking ahead to one last speech from European Central Bank (ECB) President Christine Lagarde, who will be speaking at the ECB Forum on Banking Supervision in Frankfurt. ECB President Lagarde is not expected to provide market-moving statements.

EUR/GBP Technical Outlook

The Euro-Pound pairing caught an intraday rejection from the day's high near 0.8650, waffling on a technical recovery from the 50-hour Simple Moving Average (SMA) and heading back down into a nine-week low, and the way forward is clear for the EUR/GBP to continue settling towards the 0.8600 handle.

The EUR/GBP has closed in the red for all but one of the last eight consecutive trading days, and is well on the way to chalking in another bearish candle.

The pair has slipped easily through a congestion point that sees the 50-day SMA confirming a bullish crossover of the 200-day SMA, and the pair is down over a percent and a half from November's high bids at 0.8765.

EUR/GBP Daily Chart

EUR/GBP Technical Levels

EUR/GBP

Overview
Today last price	0.8629
Today Daily Change	-0.0016
Today Daily Change %	-0.19
Today daily open	0.8645

Trends
Daily SMA20	0.8706
Daily SMA50	0.8689
Daily SMA100	0.8639
Daily SMA200	0.8678

Levels
Previous Daily High	0.8663
Previous Daily Low	0.8637
Previous Weekly High	0.8765
Previous Weekly Low	0.8672
Previous Monthly High	0.8754
Previous Monthly Low	0.8616
Daily Fibonacci 38.2%	0.8647
Daily Fibonacci 61.8%	0.8653
Daily Pivot Point S1	0.8633
Daily Pivot Point S2	0.8622
Daily Pivot Point S3	0.8607
Daily Pivot Point R1	0.866
Daily Pivot Point R2	0.8674
Daily Pivot Point R3	0.8686

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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