And GBP suffered from the inflation report. Headline Consumer Price Index stuck to 1.9%. The gap between salaries and inflation means households are better off, but the pound has fewer reasons to rise. Next week there is no market mover data for GBP.
UK data was slightly positive. Bur Brexit uncertainty hammering GBP.
German economic slowdown weighing on the Union, ECB’s stimulus more than justified. Last Thursday EU Markit preliminary PMI for April reports got sort. Business activity bounced from March’s collapse, but not enough. And ECB reconsider the need for more stimulus.
Technically EUR/GBP breaks negative trend line but market is still below 100 and 200 moving average. Immediate resistance is at 0.8715/25 area. If 0.8725 area breaks next target 0.8820 area. Next target 0.8930 and final target 0.9060 area.
On the other hand key support area is at 0.8470 area. Technically it would be tough to break this level. If breaks and stable than next target 0.8330 area. And downward final target 0.8200 area.