FxWirePro: EUR/GBP breaks above 200-DMA, German HICP eyed for further impetus

Chart - Courtesy Trading View 

Spot Analysis:

EUR/GBP was trading 0.17% higher on the day at 0.8449 at around 10:45 GMT

Previous Week's High/ Low: 0.8453/ 0.8339

Previous Session's High/ Low: 0.8444/ 0.8409

Fundamental Overview:

Major focus will remain on German inflation data, scheduled at 0600 GMT on Wednesday, which is expected to remain unchanged at 8.5%. 

An unchanged German inflation reading doesn’t trim the odds of a rate hike by the European Central Bank (ECB), the euro remains bid.

On the other side, UK GDP for the second quarter is scheduled to be released at 0600 on Thursday, and a lower consensus is weighing on the pound.

A preliminary estimate is for the annualised UK GDP to print at 2.8% vs. 8.7% in the former release.

The quarterly data is expected to report a shrink in economic activities by 0.2% against the expansion of 0.8% prior.

Technical Analysis:

- EUR/GBP has broken above 200-DMA, poised for further upside

- MACD confirms bullish crossover on signal line, ADX supports gains

- Momentum is bullish. Stochs show bullish rollover from oversold levels, RSI is biased higher

- Price action is above 200H MA and GMMA indicator shows major and minor trend are bullish

Major Support and Resistance Levels:

Support - 0.8437 (200-DMA), Resistance - 0.8466 (110-EMA)

Summary: EUR/GBP trades with a bullish technical bias. Close above 200-DMA will see further gains in the pair.