EUR/GBP heavy on 0.8600 and moves lower

FXstreet.com (Barcelona) - EUR/GBP, while opening on 0.8600 for a consecutive three opening session, the pair has now fallen through and reached a low of 0.8580 and critical support line.

This week will be a data packed job for the pair starting tomorrow morning, with UK inflation data (PPI, CPI and RPI), then we will have Euro zone industrial production, and the German ZEW survey. In the US, with EUR/USD in mind, for the retail sales will come into focus. Focus then turns to the Bank of England minutes and UK labour market data as well as Euro zone GDP figures. On Thursday, we have retail sales figures from the UK, and then it’s over the US.

EUR/GBP testing the 55 dma

EUR/GBB is now resting at the 0.8584 50 day ma. A break of this is critical and the bears will eye the 0.8507 2012-2013 uptrend, Meanwhile, the pair should be contained by the 0.8728 spike high seen last Wednesday. The 20 dma is 0.8644, the 50 dma is 0.8584 while the 200 dma is 0.8438. RSI (14) reads 35.21. The supports are ascending from 0.8464, 0.8512, 0.8550, 0.8575. Spot is currently 0.8583 while resistances are 0.8600, 0.8623, 0.8636, 0.8654 and 0.8672.