The Euro (EUR) inched lower against the Great Britain Pound (GBP) on Tuesday, decreasing the price of EURGBP to less than 0.8550 ahead of the Britain’s Consumer Price Index (CPI) news. The technical bias has turned bullish after the emergence of bullish pin bar candle yesterday.
Technical Analysis
As of this writing, the pair is being traded near 0.8521. A hurdle may be noted around 0.8535 (the short term horizontal resistance area) ahead of 0.8542 (the 38.2% fib level) and then 0.8550 (the psychological number) as demonstrated in the given below hourly chart.
On the downside, a support can be noted around 0.8520 (an immediate trendline support) ahead of 0.8515 (the low of last major downside move on hourly timeframe) and then 0.8500 (the psychological level). The technical bias shall remain bullish as long as the 0.8500 support area is intact.
What Assets to Trade after Today
In addition to EURGBP, trading GBPCAD, GBPAUD and GBPUSD can be a good strategy as the aforementioned pairs are highly reactive to the Britain’s CPI news.
How EURGBP Reacted on Past CPI Releases?
EURGBP inched higher by more than 50 pips after the release of last CPI data as the actual outcome came at 2.3% against the forecast of 2.1%.
Similarly, the pair rose by almost 35 pips after the release of January’s CPI data as the national statistics department showed upbeat CPI reading of 1.8% vs the average forecast of 1.9%.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.