The pair is flirting with highs near 0.7900, breaks above to target 0.7946 (Mar 24th highs).
Three-month implied gauge rose to almost six-year high last week, indicating investors are bracing up for a sharp swings.
Brexit risks will keep GBP weak vs its peers. Also, as the domestic economy has lost some momentum the BoE is likely to remain on hold until Q4.
Due later the European session, EMU’s advanced figures for March will be in focus, while UK’s Q4 GDP figures are also expected.
After yesterday’s higher-than-expected German CPI , market consensus now sees core consumer prices in the region rising at an annual pace of 0.9% vs. February’s 0.8% gain.
Good to buy dips around 0.7890, SL: 0.7850, TP: 0.7945/0.7970
R2: 0.7910 (Mar 25th highs)
R3: 0.7933 (Mar 23rd highs)
S1: 0.7875 (5-DMA)
S2: 0.7850 (Rising )
S3: 0.7835 (Mar 30th lows)
The pair extends gains above 0.7900 in the wake of the euro area flash inflation figures released on Thursday.
Momentum still with the bulls, we see scope for further upside, minor resistance at 0.7947.
Breaks above will see tests of 0.7970 and then 0.80 levels.
Risk averse can book partial profits at 0.7945 levels, raise trailing stop to 0.79, target 0.7970/0.80
US NFP data to keep markets volatile.
EUR/GBP has strong resistance at 0.80 levels. Close above to see further upside.