EUR/GBP is still around 0.82 area, not ready to go lower

FXStreet (Moscow) - EUR/GBP opened the day at 0.8207, spent some time in close vicinity, and rebounded slightly to 0.8215, still not sure in the direction.

Is it a downtrend resumption?

The pair retreated to 0.82 area, and it may be a sign that after some period of consolidation around 0.8250 the cross resumed the downtrend with the nearest target at 0.8170 not seen from February, 2014. Besides, there are some fundamental reasons to expect the continuation – the looming EMU CPI data. We already know that German CPI was much worse than expected printing -0.3% vs -0.1% forecast, and supporting the notion of deflationary pressure evolving in the euro zone. If today’s reading will confirm the fears, wait for the move lower soon. The initial target in this case in at 0.8185 support.

What are today’s key EUR/GBP levels?

Today's central pivot point can be found at 0.8222, with support below at 0.8185, 0.8162 and 0.8125, with resistance above 0.8245, 0.8282, and 0.8305. Hourly Moving Averages are bearish, with the 200SMA at 0.8226 and the daily 20EMA flat at 0.8246. Hourly RSI is bearish at 37.

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