- EUR/GBP consolidates the previous day’s losses while trading in a choppy range above 0.9008.
- Bearish MACD suggests further weakness to two-month-old support line.
- 21-day EMA, monthly top add to the upside barriers.
- Both EU and UK CPIs are likely to come in softer in July.
EUR/GBP trades modestly changed while taking rounds to 0.9010 ahead of Wednesday’s European session. The pair dropped 0.50% the previous day but couldn’t slip beneath 50-day EMA that presently questions the traders.
Even so, bearish MACD and the pair’s downside break of 21-day EMA drives the quote towards an ascending trend line from June 16, at 0.8980 now.
Should the sellers manage to dominate past-0.8980, monthly low near 0.8970 and July month’s bottom surrounding 0.8940 will be in the spotlight.
On the upside, the pair needs to provide a daily closing beyond 0.9015 before attacking a 21-day EMA level of 0.9033.
However, bulls will remain cautious unless the pair clears the monthly high of 0.9070, which in turn could direct the bulls to July month’s peak close to 0.9150.
EUR/GBP daily chart
Trend: Bearish
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