Today we will take a look at the EUR / GBP currency pair. At the time of writing, we observed a consolidation of quotes under the technical and psychological resistance level of 0.9000. This level last week kept the currency pair from further growth, and this week we can see some consolidation. The technical analysis, indicators show we are witnessing the formation of a trading signal to break through this resistance level. But given the upcoming publication of the inflation report in the eurozone, there is a risk of a weakening EUR and, as a result, a weakening pair.
A break and subsequent fixation above the resistance level of 0.9000 will confirm further buying interest and we may see a move to 0.9050 and further on to 0.9125.
At the same time, the presence of a false breakthrough on H1 - a breakdown of the resistance level of 0.9000 and the return of the currency pair to this level in the same hourly candlestick or during the formation of the next one, will indicate a lack of buying interest, thereby activating a bearish scenario.
The implementation of the bullish scenario is possible only with an unexpectedly strong report on inflation in the eurozone, which is pretty unlikely.
The above review is not a direct guide to action, but carries an exclusively recommendatory nature.
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