FxWirePro: EUR/GBP fades spike, remains depressed below major trendline resistance

Chart - Courtesy Trading View 

EUR/GBP was trading 0.53% lower on the day at 0.8632 at around 12:30 GMT.

The pair has erased some of the previous session's gains, finds rejection at 200-week MA.

GMMA indicator shows major and minor trend are bullish. Momentum is with the bulls and volatility is high and rising.

Euro finds support from a hawkish shift by the European Central Bank (ECB), signalling that it would deliver its first rate hike since 2011 in July. 

The ECB also left the door open for a potentially larger move in September. IFO institute's downward revision of the 2022 GDP growth projections for the German economy capped upside.

IFO lowered its 2022 forecast for German growth to 2.5%, from 3.1% previously predicted in March, and revised its inflation forecast sharply higher to 6.8%, up from an earlier 5.1%.

EUR/GBP trades with a bullish bias. 'Golden Cross' (Bullish 50-DMA crossover on  200-DMA) adds to the upside bias.

Price action has retraced below major trendline support. Decisive break above 200-week MA required to propel the pair higher.