EUR/GBP: Traders await fresh clues from calendar, G20 to break the impasse
- Overbought RSI, lack of fresh clues limit EUR/GBP moves around multi-month high.
- Eurozone CPI, UK GDP, and G20 will be the key for fresh impulse.
Despite rising to fresh 5.5 months high, the EUR/GBP pair refrains from portraying major moves ahead of the key economic data and G20 updates as it clings to 0.8970 while heading into Europe open on Friday.
The pair has gradually been taking advantage of the Brexit and political uncertainty at the UK whereas not too sluggish data from the EU managed to kept buyers at ease.
However, overbought RSI limits the buyers before key details from Eurozone and the UK, not to forget about the presently important G20.
Initial estimation of Eurozone Consumer Price Index (CPI) is expected to remain unchanged at 1.2% on a yearly basis during June. Though, Core CPI may advance to 1.0% from 0.8% over the same period and time format.
On the flipside, final reading of the UK Gross Domestic Product (GDP) and current account data for the first quarter (Q1) of 2019 gains market attention. The growth figure isn’t expected to change from initial forecasts of 0.5% and 1.8% on QoQ and YoY basis respectively whereas Current Account deficit might widen to £-32.000 billion from the prior of £-23.707 billion.
Elsewhere, trade-related announcements from the group of 20 global leaders (G20) in Japan will also be the key to determine near-term market moves.
Technical Analysis
A sustained break of mid-January high near 0.8988 can quickly propel prices to 0.9000 and then towards multiple resistance-area around 0.9060, failing to do so can keep highlighting 7-week old support-line at 0.8926, followed by 21-day exponential moving average (21-D EMA) at 0.8894.