- EUR/GBP under pressure trades a tight range into the European open. Markets awaiting fresh incentives from the first estimate of UK Q1 GDP figures.
- Expectation is for the GDP growth rate to have slow to 0.4% in Q1 2016, down from 0.6% seen in the last quarter of 2015, on the back of global headwinds and looming Brexit concerns.
- Traders also wary ahead of the crucial central bank events due later this week – FOMC and BOJ policy outcomes.
- Immediate resistance is located at 0.7786 (cloud top), while support is seen at 0.7750 (April 25th lows).
- Momentum with the bears, RSI weak at 36, breaks below the 0.77 handle could accentuate weakness.
- Weekly chart have a heavily bearish tilt. Doji formed on this weeks candle till now. Stochs, RSI and MACD confirm downside.
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