EURGBP Lower Despite Steep Drop in Inflation

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The EURGBP was trading lower on Wednesday after traders remained hopeful of a positive Brexit outcome. The pound shook off a higher unemployment rate and a Tier 3 strict lockdown in London to gain on the euro.

Today also saw another drop in U.K. inflation due to cheaper clothing and food prices. The ONS reported that the CPI number had fallen to 0.3% in November from 0.7% in the previous month. The pound strength is a sign that Brexit is in command of the pair.

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Traders are now awaiting the services and manufacturing PMI data for the U.K., EU and, German economies. German manufacturing OMI has been strong with a forecast of 56.4, while U.K. services is expected to be nearer 50 due to the lockdown effects on tourism and hospitality.

EURGBP Technical Outlook

EURGBP saw resistance again at the 0.9175 level and has dropped to the 50-day moving average. The next support level is at 0.8870 and this is a well-worn range for the pair. A break of either of the two levels mentioned should lead to a larger move. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching

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EURGBP Daily Chart

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