EUR/GBP: bulls have eyes on 0.89 handle on break of 10-hr SMA

• EUR/GBP: eyes key data eents for the week.
• EUR/GBP: 4hr 200-SMA supports.

EUR/GBP dropped to and recovered from the 4hr-200 SMA, currently, EUR/GBP is trading at 0.8865, down -0.25% on the day, having posted a daily high at 0.8900 and low at 0.8850.

EUR/GBP's high fell just short of territory on the 0.89 handle after sliding to a fresh eight-day low while the euro lost a bid with the cost of carry is becoming more expensive. ECB's Coeure was peaking and saying short-term interest rates will remain at "very low levels" has put a spanner in the bull's works.

Key data events

While we are light on data for the moment, looking ahead for the week, Euro zone data comes with German and EZ final Feb inflation and EZ IP. There will also be theECB Watchers conference where Draghi, Praet and Constancio are all due to speak. As for the UK, focus will be on the updated fiscal forecasts in the Spring Statement

EUR/GBP levels

The decending 1hr 10-SMA at 0.8871 is stalling the bulls currently, but a break through this level will open room to the 0.89 handle where 0.8962 comes as the key target again though 0.8920. 0.8936 is also an important level. On the wide, the 0.9034 October 2017 high ahead of 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements come next. Below 0.8880, 0.8770 guards a run down to the December and January lows are located at 0.8689/87.