EURGBP has formed higher lows connected by a rising trend line that’s been holding since mid-December last year. Price is finding support at this area once more, likely setting its sights on the swing high next.

The trend line happens to coincide with the 61.8% Fibonacci retracement and the dynamic inflection points at the moving averages. If these are enough to keep losses in check, EURGBP could resume the climb to the swing high near the .9000 major psychological mark.

The 100 SMA crossed above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break.

Stochastic is also on the move up to confirm that bullish momentum is returning, and the oscillator has plenty of room to climb before reflecting overbought conditions. RSI is also heading north but is already halfway through on its move up to the overbought region.

Earlier on, the UK reported weaker than expected CPI figures, leading traders to price in lower odds of tightening by the BOE. Keep in mind that the UK economy is dealing with high inflation in a low growth environment, which makes it challenging for the central bank to keep increasing borrowing costs.

Headline CPI fell from 10.5% to 10.1% year-over-year versus the projected 10.3% figure while the core CPI slipped from 6.3% to 5.8%. Prior to this, the UK also reported a drop in its average earnings index, reflecting weaker inflationary pressures down the line.

Meanwhile, ECB officials have been particularly hawkish, with committee members reiterating the need to do more in terms of warding off inflation. The eurozone industrial production is up next, and analysts are predicting a 0.8% dip in activity so a downbeat read might mean losses for the shared currency.