Steady Downtrend in EUR/GBP After UK Inflation Numbers

EUR/GBP was on a bullish trend since early 2022, although it started making lower highs in February and since late April the decline has accelerated as inflation between the UK and the Eurozone starts to diverge.  This pair has lost around 330 pips since then with the 20 SMA (gray) acting as resistance on the daily chart, showing that the pace of the decline is strong.

The Eurozone CPI (consumer price index) inflation has fallen much faster than in the UK, where it remained above 10% for a prolonged period. Today we had the UK consumer inflation numbers in the morning, which also showed a decline as expected.

UK May CPI Inflation Report

EUR/GBP Live Chart