EUR/GBP grinding higher ahead of Eurozone inflation next week

• The Consumer Price Index for the Eurozone is scheduled next Wednesday at 9:00 GMT.
• The EUR/GBP is steady and bulls are targetting the 0.88 level.

The EUR/GBP is trading at around 0.8775 virtually unchanged on Good Friday as most of the market participants are away from their desks on the long Easter weekend.

The macroeconomic calendar is rather light and in observance of the Easter break, the financial markets are shut down in the US, Europe, Australia and New-Zealand. While the US and Canadian markets will reopen on Monday, Europe, Australia and New Zealand markets will only re-open next Tuesday. 

Next week on Wednesday, the Eurozone inflation numbers are going to be released with the preliminar CPI numbers for March while on Thursday the Governing Council will release its ECB Monetary Policy Meeting Accounts’ report. Both piece of news can greatly impact the European currency.

EUR/GBP daily chart

The first part of March saw a selloff in the EUR/GBP which then reversed a few pips shy of the 0.8650 level. The market is now evolving in a small bull channel. Earlier in the week, the bulls made an attempt at the 0.88 handle which is acting as a key resistance level. If the bulls manage to break above it, then the 0.8850 level should become the next bulls’target. As a confluence, the 100-period simple moving average is also very close, at the 0.8850 level. Support levels to the downside are seen at 0.8733 swing low made on March, 28, followed by the 0.87 handle psychological level. The RSI and the Moving Average Convergence Divergence (MACD) indicators are rather constructive to the upside.