FxWirePro: EUR/GBP finds stiff resistance at daily cloud, decisive break above required for upside continuation

EUR/GBP chart - Trading View 

Technical Analysis: Bias Neutral

- EUR/GBP was trading 0.26% higher on the day at 0.8611 at around 14:10 GMT

- Upside remains capped at 5-DMA and daily cloud

- Stochs are biased lower and RSI is below the 50 mark

- Price action is below major moving averages and volatility is low

Data Released:

Germany headline CPI slipped lower to 0.5% in May from 0.7% in the previous month, but better than consensus estimates at 0.3%. 

On a yearly basis, the CPI climbed 2.5% as against market expectations for a rise to 2.4% from 2% in April.  

Further, the Harmonized Index of Consumer Prices (HICP) rose to 2.4% YoY, missing consensus estimates pointing to a reading of 2.5%.

The EU published M3 Money Supply that contracted to 9.2% YoY in April, missing the market’s expectations.

Support levels - 0.8555 (Lower BB), 0.85, 0.8471 (110-month EMA)

Resistance levels - 0.8612 (5-DMA), 0.8621 (50-DMA), 0.8650 (23.6% Fib)

Summary: EUR/GBP trades with a neutral bias. Technical indicators do not provide a clear directional bias. The pair finds stiff resistance at daily cloud. Decisive break above required for further upside.