EUR/GBP jumps on soft UK data

FXstreet.com (Barcelona) - Having traded in a close to 20 pip range overnight and into this morning, EUR/GBP has pushed higher on softer than expected UK data, posting a high at 0.8438, before declining to where it is currently trading at 0.8425

UK data disappoints

UK data came in generally softer than expected with YoY for October CPI coming in at 2.2% against expectations of 2.5% and Core UK YoY CPI for October missed expectations of 2%, at 0.9%. Meanwhile, PPI was mixed, showing improvements in MoM Input and Output, but YoY declines in the respective measures. RPI also disappointed forecasts.

How strong has the move been?

The hourly FXstreet.com OB/OS Index is neutral while the Trend Index is showing a slightly bullish trend. Hourly RSI reads 81 at the moment and the ADX is at 36. meanwhile, the 200-period SMA is right now at 0.8417 and flat. The exponential average closing price for the last 20 days is 0.8444 and is trending up.

How volatile has the EUR/GBP been?

Bollinger Band width is 36 pips and observed as being expanding in the hourly chart, while the ATR(14) prints 7 pips. The average movement for this session has been of 6 pips per hour in the last 4 weeks.

What price levels and patterns have to be considered?

The central pivot point is located at 0.8374. Pivot supports for this pair are to be found at 0.8352 (S1), 0.8315 (S2) and 0.8293 (S3). Conversely, daily pivot resistances for this pair are to be found at 0.8411 (R1), 0.8433 (R2) and 0.8470 (R3). Special attention deserves the price range 0.8400-0.8366 where several technical levels are confluent today.

United Kingdom Producer Price Index - Input (YoY) n.s.a down to -0.3% in October from 0.9%

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