EURGBP consolidates for the fourth consecutive trading session after the pair breached below the 50 and 200 days moving average earlier this week. The EMU area annual inflation rate came in at 0.7% in March 2020, down from 1.2% the previous month. The previous year rate was 1.4%. European Monetary Union annual inflation was 1.2% in March 2020, down from 1.6% in February. The previous year, the rate was 1.6%. The core Consumer Price Index came in at 1.1% in line with forecasts. The European Monetary Union Construction Output dropped to -0.9% in February from the previous 6%.
IMF growth projections for 2020 reported in the spring meeting came out pretty dismal; for Germany sees a 7.5% contraction, for France -7.2% and for Italy sees -9.1%.
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EURGBP Price Analysis
EURGBP is 0.04% higher at 0.8706, as the consolidation phase below the 50-day moving average continues for the fourth consecutive trading session. The technical picture is neutral for the pair as it is trapped between the 100 and 200-day moving averages.
On the downside, the first support for EURGBP pair stands at 0.8682 the daily low. A close below might test the next support zone at 0.8655 the low from March 9 trading session. More bids might emerge at 0.8610 the 100-day moving average.
On the other side, the intraday resistance stands at 0.8712 the daily top. A credible break above might challenge the next hurdle at 0.8736 the 50-day moving average. If the pair break above 0.8736 might test the next supply zone at 0.8788 the high from April 13.
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