Britain Prime Minister Theresa May spell “Plan B” on Monday, for us it seems the latest version of “Plan A.” Following last week’s defeat in parliament vote, scepticism steps in over the extending the Brexit deal line scheduled on March 29.

Technically, the euro cross EURGBP manage to hold the 61.8 fib reaction on a weekly basis. Ahead of this week latest developments of Brexit and macroeconomic data outcome cast the euro cross trend.

Data review:

  • UK CPI 12-month rate was 2.1% in December 2018, down from 2.3% in November 2018
  • Retail sales in December 2018 decreased by 0.9%

Data preview:

The following are the top-tier data releases and events that will keep forex traders busy:

UK unemployment rate (Tue), German ZEW Economic Sentiment (Tue), EA PMI surveys (Thu), ECB policy meeting (Thu) and German Ifo Business climate (Fri).

TECHNICAL OVERVIEW

The EURGBP manage to hold the 61.8 fib reaction on a weekly basis (0.8620-0.9100 rally). Ahead of today’s macroeconomic data the cross likely to remain between 0.8760-0.8870. The indicators give a mixed outlook as the RSI parked at 30 levels, but the oscillator lacks turnaround conviction.

Support at the (100EA) Weekly has held firm in the past week keeping momentum in favor of a tight range; however, rallies have been sold. The reaffirmation of support at 100EA (Weekly) could trigger through the earlier breakdown level 0.8940. To confirm a near-term trend change, the cross needs to break through 0.8940. In this case, 0.9000 and 0.9060 could achievable.

On the downside, a break below last week’s low may trigger losses towards 0.8730/0.8700 and 0.8650.

 

For intraday, apprehension among bulls increasing at 0.8870, a break above this level may pave the way for high prices through 0.8900 and earlier breakdown resistance 0.8930 level.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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