EUR/GBP holding 0.874 post-UK GDP and German inflation data

• The UK Gross Domestic Product (GDP) and the German inflation data failed to move EUR/GBP.
• The EUR/GBP is trading in a range between 0.8740 and 0.8770.

The EUR/GBP is trading at around 0.8759 virtually unchanged on Thursday so far as earlier in the European session neither the UK Gross Domestic Product, which matched analysts’ expectations nor the German inflation numbers provide much directionality to the EUR/GBP which is trading quietly in the 20-pip range 0.8740-0.8770 since Wednesday.    

The ECB is looking closely at the inflation data in order to justify the rate-hike cycle. “The German price-index figures released today suggest the European Central Bank might be too relaxed about inflation.” Notes Peter Rosenstreich, analyst at Swissquote. 

The next market-moving news should be next Wednesday with the Eurozone inflation data. Any deviation to the upside might provide some fresh impetus to the EUR/GBP. 

EUR/GBP daily chart

The EUR/GBP is trading in the 0.87 and 0.89 range since the start of the year. Both the RSI and the MACD indicators are turning higher. Two days ago the market found resistance at the 0.88 handle and since then the market is consolidating in a tight range. 

EUR/GBP 4-hour chart

The market is evolving in an ascending channel. The bulls will need to close above 0.88 swing high to rule out the possibility that the March 22-29 bull move is a corrective move from the preceding March 7-22 bear leg. Support is seen at 0.8740 and 0.87 swing lows while resistance is seen at the 0.88 and 0.89 handle.