EUR/GBP stuck at 10-DMA ahead of UK data release

EUR/GBP failed to take out 10-DMA in Asia as investors await UK monthly employment and wage growth numbers, while EUR bulls stays on sidelines ahead of tomorrow’s ECB rate decision.

Cable slide supporting the cross

The minor uptick seen in the cross in the Asian session is largely due to a drop in the GBP/USD pair below 1.30 levels. British Pound was offered yesterday and continued its bear trend in Asia despite upbeat UK consumer price index figure. Moreover, the Pound felt the heat of Moody’s take on UK’s creditworthiness following the Brexit vote and of IMF’s bearish growth forecasts.

Still, the cross struggled to take out 10-DMA because the common currency was offered as well and remains under pressure today as markets expect ECB to sound dovish and lower the threshold for bonds to qualify for the QE program.

EUR/GBP Technical Levels

A break above 10-DMA level of 0.8425 would expose resistance at 0.8469 (July 14 high). A violation there could yield 0.8500 handle. On the other hand, a breakdown of support at 0.8384 (23.6% of 0.7599-0.8627) would open doors for a slide to 0.8299 (July 13 low). Further losses could run into support at 0.8234 (38.2% of 0.7599-0.8627).