FxWirePro: EUR/GBP consolidates previous session's gains, focus on German Retail Sales, ECB’s Lagarde for impetus

AUD/USD chart - Trading View 

Spot Analysis:

EUR/GBP was trading 0.06% higher on the day at 0.8633 at around 04:55 GMT.

Previous Session's High/ Low: 0.8645/ 0.8585

Previous Week's High/ Low: 0.8671/ 0.8575

Fundamental Overview:

German Retail Sales bears the downbeat forecast to snap a three-month uptrend with -2.0% MoM print versus +7.7% prior.

The British pound muted amid COVID third wave concerns in the UK. Further, Deputy Governor Jon Cunliffe said the Bank of England is carefully monitoring rising housing prices.

Focus on  ECB Governor Christine Lagarde's speech later today. Despite upbeat Eurozone CPI data overnight, mixed prints of the index component defies the reflation risk.

Technical Analysis:

- EUR/GPB has paused 5 straight week's of downside.

- Price action has retraced above 200H MA and GMMA has turned bullish on the hourly charts.

- The pair is consolidating break above daily cloud.

- Oscillators are turning and now support upside in the pair

Major Support and Resistance Levels:

Support - 0.8624 (Cloud top), 0.8619 (200H MA), 0.8605 (5-DMA)

Resistance - 0.8639 (55-EMA), 0.8677 (Upper BB), 0.87 (110-EMA)

Summary: EUR/GBP is consolidating previous session's gains and cloud breakout, finds stiff resistance at 55-EMA at 0.8639. Break above 55-EMA will fuel further upside.