FxWirePro: EUR/GBP retraces above 21-EMA, downbeat UK Retail Sales raises scope for more gains

Chart - Courtesy Trading View 

Spot Analysis:

EUR/GBP was trading 0.32% higher on the day at 0.8737 at around 07:45 GMT.

Previous Week's High/ Low: 0.8866/ 0.8608 

Previous Session's High/ Low: 0.8757/ 0.8673

Fundamental Overview:

A big miss on UK Retail Sales data keeps the British pound under pressure. 

Data released earlier today showed UK retail sales fell to -1.4% over the month in September vs. -0.5% expected and -1.7% previous. Core retail sales slipped 1.5% MoM vs. -0.3% expected and -1.6% previous.          

On an annualized basis, the UK retail sales plunged -6.9% in September versus -5.0% expected and -5.6% prior.

The core retail sales tumbled 6.2% in the reported month versus -4.1% expectations and -5.3% previous.

Technical Analysis:

- EUR/GBP is extending gains for the 6th straight session

- Price action has ignored previous session's Doji formation

- The pair has broken above 21-EMA, raising scope for more upside

- Price action has edged above 200H MA, GMMA indicator shows bullish shift on the intraday charts

Major Support and Resistance Levels:

Support - 0.8711 (200H MA), 0.8670 (55-EMA)

Resistance - 0.8764 (20-DMA), 0.8782 (5-week MA)

Summary: EUR/GBP was trading with bullish bias. Scope for test of fresh monthly highs above 0.88 mark.