Forex: EUR/GBP pares losses and returns to 0.8616/20

FXstreet.com (Barcelona) - The EUR/GBP has pared its losses after an earlier setback that dragged the pair to the 0.8603 region (intraday minimum) Friday. After the release of economic data in the EMU however, the pair has recovered the mark of 0.8616/20, returning to opening levels during European trading.

“The EUR/GBP's negative trades continue as a result of its position below its linear regression indicators as well as below its 50-day EMA. Having failed to stabilize above the ascending channel's key support, the chances for the pair to touch the 0.8575 are now likely.” warns the ICN.com analyst team.

ICN.com analysts point to supports at 0.8600, onto 0.8575, and finally the 0.8550 level. Conversely, a movement higher will result in the EUR/GBP meeting resistance at 0.8655, then 0.8685, and finally 0.8700.

In the EMU, the Consumer Price Index (MoM) rose +0.4% in February, against estimates of +0.4%. In addition, the Consumer Price Index (YoY) has notched an advance of +1.8% in the month of February, in line with expectations. The Consumer Price Index – Core (YoY) was reported at +1.3% in February, compared with +1.3% previously. Finally, Labor Cost (Q4) came in at +1.3%, relative to +1.8% in the previous quarter.