EUR/GBP up ahead of European markets, but price constrained near 0.8900

  • EUR/GBP up in Asia ahead of EU GDP data.
  • Volatility and volume for the pair remains low.

EUR/GBP is paring back but still up in Asia trading on low volatility, testing the 0.8900 region.

The Euro has gained against the Sterling for the past few days, and with EU GDP data coming up at 10:00 GMT today, that trend may be set to continue if growth numbers for the Eurozone can make a beat on the market forecasts of 2.7% year-on-year.

Sterling has mid-level Retail Sales data on Friday at 09:30, but EUR/GBP can largely expect Euro trading to dominate the pair, especially with US CPI data today at 13:30 promising to inject volatility into the markets, with traders going squirrelly ahead of the American inflation metric.

EUR/GBP Technicals

Intraday resistance is currently priced in at yesterday's high of 0.8910, and a break above this will leave the pair trading near three-month highs, while support for the intraday session is priced in near 0.8888. Daily candles have the pair in a descending consolidation channel, currently trading just above the 200-day SMA, but the middling consolidation pressure has left the pair at an inflection point for some time, and unlikely to break away from the major daily indicator until a major shift in underlying fundamentals for either currency takes place. Daily support/resistance is priced in at 0.8707 and 0.8924 respectively.

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