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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	0.8586
Today Daily Change	-0.0002
Today Daily Change %	-0.02%
Today daily open	0.8588

Trends
Daily SMA20	0.8547
Daily SMA50	0.8479
Daily SMA100	0.8425
Daily SMA200	0.8444

Levels
Previous Daily High	0.861
Previous Daily Low	0.8568
Previous Weekly High	0.8721
Previous Weekly Low	0.8512
Previous Monthly High	0.8619
Previous Monthly Low	0.8367
Daily Fibonacci 38.2%	0.8594
Daily Fibonacci 61.8%	0.8584
Daily Pivot Point S1	0.8567
Daily Pivot Point S2	0.8546
Daily Pivot Point S3	0.8525
Daily Pivot Point R1	0.8609
Daily Pivot Point R2	0.8631
Daily Pivot Point R3	0.8652

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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