EUR/GBP on the front foot ahead of UK CPI data

EUR/GBP advanced in Asia as the British Pound is under pressure ahead of the data released in the UK, which could show annualized CPI and core CPI ticked up in June.

Stuck at 23.6% Fibo

The bullish move in Asia ran into resistance at 0.8384 (23.6% of June 24 low – July 6 high). Cable retreated 0.20% in Asia although the move lacked any fundamental triggers and is slightly surprising given the inflation in the UK is seen rising in June.

Furthermore, a drop in the treasury yields also failed to strengthen Cable. Meanwhile, EUR/USD pair managed to avoid losses and is trading flat around 1.1080 levels. Consequently, the cross ran into Fibo resistance before backing off slightly to 0.7373 levels.

EUR/GBP Technical Levels

The immediate hurdle is noted at 0.8384 (23.6% of June 24 low – July 6 high), above which the cross could target 0.8438 (10-DMA). A break higher would expose 0.85 handle. On the lower side, support is seen at 0.8320 (previous day’s low), which if breached shall expose 0.8234 (38.2% of June 24 low – July 6 high). A violation there could yield 0.82 handle.