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EUR/GBP chart - Trading View
EUR/GBP slumps lower on the day, trades 0.45% lower at 0.8853 at around 10:00 GMT.
Eurozone Dec final CPI printed at -0.3% on a yearly basis, meeting the flash estimate of -0.3% and -0.3% expectations. The core figures rose by 0.2% versus +0.2% previous and +0.2% expectations.
On a monthly basis, the bloc’s CPI figure for December accelerated by 0.3% versus 0.3% expectations and -0.3% previous while the core CPI numbers arrived at 0.4% versus 0.4% expected and 0.4% last.
The pair has resumed weakness after failure to extend gains above 5-DMA, bias is bearish.
Price action has hit 8-month lows at 0.8847, technical indicators support further weakness.
The pair is testing major support at 0.8850 (Wedge base). Decisive break below to plummet prices below.
Support levels - 0.8850 (Wedge base), 0.8830 (200W MA), 0.88 (psychological mark), 0.8743 (61.8% Fib)
Resistance levels - 0.8876 (5-DMA), 0.89, 0.8929 (200H MA)
Summary: The single currency was unfazed after Eurozone final CPI meets estimates. The pair trades with a major bearish bias. Breach at wedge base support likely to plummet prices. Next major support lies at 200W MA at 0.8830. Momentum is strongly bearish, scope for test of 61.8% Fib at 0.8743.