FxWirePro: EUR/GBP extends range trade below 50-DMA, focus on BoE for further direction

• EUR/GBP is trading in a narrow range as we head into Bank on England policy meeting.
   
• Caution seen ahead of Bank of England's monetary policy meeting.
   
• The Central Bank is expected to decide unchanged monetary policy amid further signs of a slowdown in UK economic activity.
   
• The major is on a downtrend for 3rd consecutive week and upside remains capped below weekly 5-SMA.
   
• Technicals on weekly charts are bearish, RSI and Stochs have rolled over from overbought levels. MACD is on verge of bearish crossover on the signal line.
   
• Immediate support on the downside lies at 0.8920 (38.2% Fib), while upside finds stiff resistance at 0.9040 (nearly converged 5&50 DMAs).
   
• Decisive break above 50-DMA could see minor reversal upto 20-DMA at 0.9155. Further upside only on break above.

Support levels - 0.8952 (cloud top), 0.8920 (38.2% Fib retrace of 0.8297 to 0.9306 rally), 0.8870 (trendline)

Resistance levels - 0.9034 (50-DMA), 0.9076 (5-DMA), 0.9132 (weekly 5-SMA)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -73.6877 (Neutral), while Hourly GBP Spot Index was at 91.631 (Bullish) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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