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A Touch Firmer Post-UK CPI

EURGBP

Feedthrough from UK CPI adds ~10 pips to EUR/GBP, which now sits just below GBP0.8720. Yesterday’s modest blip lower in the cross has been fully reversed, after a brief foray below GBP0.8700.

  • Technically, the trend outlook in EUR/GBP remains bullish despite this week’s move lower. Last week’s gains reinforced a bullish theme and resulted in a print above GBP0.8754, the Oct 31 high. A clear break of this hurdle would confirm a resumption of the uptrend and open GBP0.8793, a Fibonacci retracement. Moving average studies are in a bull-mode position highlighting a rising trend. Firm support lies at the 50-day EMA, GBP0.8672.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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