EUR/GBP's love affair with 200-day MA continues

• The pair continues to trade in the sideways manner.
• Focus on German IFO data.

The EUR/GBP found bids below the 200-day MA level of 0.8805.

As of writing, the cross is trading at 0.8813 levels. Since Nov. 30, the 200-day MA has been acting as a sort of mean, i.e. dips below the moving average have been short-lived, while the cross has failed to gain much altitude above the 200-day MA.

However, the story could change today if the German IFO indices beat estimates by a big margin. In such a case, the cross may cut through offers around the 50-day MA of 0.8863.

EUR/GBP Technical Levels

A move below 0.8805 (200-day MA) would open up downside towards 0.8760 (Dec. 15 low) and 0.8756 (Dec. 4 low). On the higher side, breach of resistance at 0.8863 (50-day MA) could yield a rally to 0.8900 (psychological level) and 0.8941 (100-day MA).