EUR/GBP slips while GBP/USD rises post UK GDP with USD/CNH remaining side-lined
Outlook on EUR/GBP, GBP/USD and USD/CNH post UK GDP and plethora of China data.
EUR/GBP slips to £0.86 region
EUR/GBP’s drop from its £0.8714 December high has taken it to Tuesday’s £0.8587 low which is back in sight following an improved month-on-month (MoM) UK gross domestic product (GDP) number which was negated by a drop of the three-month average, though.
A fall through £0.8587 would put the 15 December low at £0.8572 on the map and perhaps also the December low at £0.855.
Minor resistance sits at Monday’s £0.8621 high and Friday’s £0.8634 high.
GBP/USD nears mid-December peak
GBP/USD’s rise from its two-week low at $1.2611 is ongoing amid slightly better-than-expected MoM UK GDP data with the mid-December high at $1.2794 and the December five-month peak at $1.2828 representing upside targets.
Upside pressure should remain in play while Wednesday’s low at $1.2687 underpins.
Above it, minor support can be found at Wednesday’s $1.2745 high and below it along the November-to-January uptrend line, 21 December and current January lows at $1.2666 to $1.2611.
USD/CNH remains in a tight sideways trading range
USD/CNH’s decline from its September CN¥7.3681 one-year high, amid a depreciating greenback, has so far taken the cross to an eight-month low at CN¥7.0875 before the cross recovered and started trading in a low volatility trading range along the 200-day simple moving average (SMA) at CN¥7.1782.
China consumer prices falling for a third straight month while imports rose less than expected but exports growth beat forecasts as producer prices fell more than expected didn’t change the state of affairs on Friday.
The 200-day SMA at CN¥7.1782 currently acts as resistance. While the next higher 55-day SMA and this week’s high at CN¥7.1897 to CN¥7.1905 cap, further sideways trading is at hand. Minor support below Thursday’s CN¥7.1617 low can be spotted at Monday’s CN¥7.1545 low.
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