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FxWirePro: EUR/GBP extends bounce off 200-DMA support, focus on UK Retail Sales and Eurozone Consumer Confidence for impetus

Chart - Courtesy Trading View 

Spot Analysis:

EUR/GBP was trading 0.05% higher on the day at 0.8489 at around 05:40 GMT

Previous Week's High/ Low: 0.8618/ 0.8482

Previous Session's High/ Low: 0.8494/ 0.8447

Fundamental Overview:

Mounting inflationary pressure in the UK has renewed recession fears, keeping the pound under pressure.

Investors await the release of the Retail Sales in the pound area and Consumer Confidence in the eurozone for further impetus.

The annual UK Retail Sales are expected to fall to -7.2% from the prior +0.9%. While the core Retail Sales is expected to land at -8.4% y/y against the former figure of -0.6%. 

On the other side, eurozone Consumer Confidence is seen improving to 21.5 from the previous print of 22.

Technical Analysis:

- EUR/GBP is extending upside for the 3rd straight session, outlook bullish

- The pair is extending sideways below 200H MA, decisive break above will propel the pair higher

- GMMA indicator shows major and minor trend are strongly bullish

- Price action is above major moving averages and 5-DMA is turning bullish

Major Support and Resistance Levels:

Support - 0.8441 (200-DMA), Resistance - 0.8587 (110-week EMA)

Summary: EUR/GBP trades with a bullish bias. Scope for test of yearly highs above 0.86 levels. Bullish invalidation only below 200-DMA.

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