EUR/GBP fails once again near 0.7970 post-CPI

The bulls were left unimpressed by the upward revision to the Eurozone CPI estimates, sending EUR/GBP lower towards the mid-point of 0.79 handle.

EUR/GBP capped below 5-DMA

Currently, the EUR/GBP pair trades 0.28% higher at 0.7957, unable to break through the stiff resistance placed above 0.7970 levels. The EUR/GBP cross largely ignored upbeat Eurozone final CPI print and extends its retreat from session tops.

Consumer Price Index (CPI) in the 19-nation bloc was revised higher to show no growth in March from the initial estimate of 0.1% drop. Core HICP was left unrevised at 1.00% y/y.

Meanwhile, the renewed offers seen in the cross are mainly in response to the ongoing recovery witnessed in the GBP/USD pair, as markets reposition themselves ahead of the BOE monetary policy meeting scheduled later this session.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.8000 (round numbers), above which it could extend gains to 0.8025/24 (10-DMA/ 1h 200-SMA). To the downside immediate support might be located at 0.7925/10 (Apr 13 & 1 Low) below that at 0.7863 (50-DMA).