• EUR/GBP snaps three-day uptrend while attacking intraday low.
  • UK CPI expected to regain traction, expected to rise 0.5% YoY in December.
  • Seven-week-old horizontal area, 10-day SMA guard immediate upside, bears need to break November low for confirmation.

EUR/GBP remains depressed intraday low of 0.8891 while heading into London open on Wednesday. In doing so, the pair drops for the first time in four days.

The move should be considered an early sign of the UK CPI data, up for publishing at 07:00 GMT. However, the virus woes and the Brexit worries offer further hardships to the sterling, which in turn suggests EUR/GBP strength.

Read: When are the UK CPIs and how could they affect GBP/USD?

Even so, a horizontal area including lows marked since December 01, around 0.8930, precedes 10-day SMA level of 0.8934 to challenge the quote’s immediate upside.

In a case where the EUR/GBP buyers manage to cross 0.8935 hurdle, a confluence of 21-day SMA and a falling trend line from December 21, near 0.8978/80, will be a tough nut to crack for the bulls.

On the flip side, the current bearish impulse may target the region comprising multiple lows marked since November 11 between 0.8860 and 0.8865.

Overall, EUR/GBP bears technically have an upper hand but the fundamental challenges for the UK could trigger intermediate consolidation.

EUR/GBP daily chart

Trend: Bearish

Additional important levels

Overview
Today last price 0.8893
Today Daily Change -1 pip
Today Daily Change % -0.01%
Today daily open 0.8894
 
Trends
Daily SMA20 0.8982
Daily SMA50 0.8997
Daily SMA100 0.9035
Daily SMA200 0.8992
 
Levels
Previous Daily High 0.8919
Previous Daily Low 0.8884
Previous Weekly High 0.9037
Previous Weekly Low 0.8866
Previous Monthly High 0.923
Previous Monthly Low 0.8929
Daily Fibonacci 38.2% 0.8905
Daily Fibonacci 61.8% 0.8897
Daily Pivot Point S1 0.8879
Daily Pivot Point S2 0.8864
Daily Pivot Point S3 0.8844
Daily Pivot Point R1 0.8914
Daily Pivot Point R2 0.8934
Daily Pivot Point R3 0.8949

 

 

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