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EUR/GBP Loitering South of Resistance Ahead of Eurozone CPI Data

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Ahead of today’s eurozone CPI inflation report (9 am GMT), the EUR/GBP cross is approaching an interesting resistance level of £0.8500.

What makes this level a worthwhile watch is that the base is complemented by several additional resistances.

These resistances include the potential ascending resistance line, drawn from the low of £0.8493, which, as you can see, is nestled just north of the noted horizontal resistance level. You will also note that we have a resistance area at £0.8533-£0.8500, as well as an AB=CD resistance at £0.8513 (depicted by a 100% projection ratio) that’s closely shadowed by a 38.2% Fibonacci retracement ratio and a 50.0% retracement ratio at £0.8521, respectively.

Supporting a reaction from the technical confluence between £0.8533 and £0.8500 is the trend. The overall bias has been to the downside since late 2023, with defined lower lows and lower highs being seen since April this year.








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