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FxWirePro: EUR/GBP slumps to hit 8-month low, break below 'Wedge Base' eyes 61.8% Fib

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.

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