The EUR/GBP cross reversed early losses to 0.9000 handle and has now bounced-off around 40-pips from session low following the release of EU CPI print.
Currently trading around 0.9040 region, the shared currency caught fresh bids after the final Euro-zone CPI print for the month of September matched initial estimates to show a yearly rise of 0.4%. Meanwhile, core CPI also matched consensus estimates and came-in at 0.8% y-o-y.
Also, an offered tone around the GBP/USD major, following weekend comments from French President Francois Hollande and German Chancellor Angela Merkel that fueled concerns over 'hard Brexit', also contributed to the pair's recovery from session low.
In absence of any relevant economic data either from UK or from Euro-zone, the cross would continue to derive its move from prevalent sentiment surrounding the British Pound and on any fresh news / developments related to Brexit.
Technical levels to watch
From current levels, 0.9068 (Oct. 13) seems to act as immediate resistance above which the cross is likely to make a fresh attempt towards reclaiming 0.9100 handle and aim towards testing 0.9130-40 resistance area.
On the flip side, weakness below 0.9020 immediate support, leading to a subsequent drop below 0.9000 psychological mark is likely to accelerate the slide immediately towards 0.8970 before the pair drops towards retesting 0.8900 handle.
- 1 Week
- 1 Month
- 1 Quarter
1 Week Avg Forecast 0.9013
- 25% Bullish
- 25% Bearish
- 50% Sideways
Bias Sideways 1 Month Avg Forecast 0.8795
- 30% Bullish
- 60% Bearish
- 10% Sideways
Bias Bearish 1 Quarter Avg Forecast 0.8844
- 33% Bullish
- 44% Bearish
- 22% Sideways