FxWirePro

EUR/GBP short setup

Short
FX:EURGBP   Euro / British Pound
Euro largely unchanged after Eurozone prelim GDP and PPI data.

Eurozone economy advanced 0.5% on quarter in the three months to March of 2017 as expected.

While, EZ Producer Price Index (YoY) registered at 3.9%, below expectations (4.1%) in March.

EUR/GBP fails to hold gains above 20-DMA on two successive sessions, we see little support on the downside till 0.83 levels.

We see spinning top and doji formations on daily charts at crucial 20-DMA resistance.

Price action is well below Ichi cloud and major moving averages.

The pair is currently holding 5-DMA support at 0.8439. A break below will see further drag.

Support levels: 0.8440 (5-DMA), 0.8404 (Mar 28 low), 0.8371 (Dec 2 & 9, 2016 low), 0.83

Resistance levels: 0.8460 (20-DMA), 0.85, 0.8530 (Apr 25 & 26 high), 0.8548 (100-DMA)

Good to go short on break below 0.8435, SL: 0.8485, TP: 0.84/ 0.8370/ 0.83
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