FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP has slipped lower from session highs at 0.8651 and was trading largely unchanged at 0.8615 at around 10:45 GMT.

The pair is extending weakness for the fourth straight session and is currently trading shy of 110-EMA support at 0.8605.

Technical indicators support downside in the pair and decisive break below 110-EMA will drag the pair lower. 

Data released earlier on Friday showed Eurozone's Final Consumer Confidence Index matched market expectations at -27.6 in October vs. -28.8 recorded previously.

Meanwhile, the bloc’s Economic Sentiment Indicator for October dropped to 92.5, also inline with expectations and 93.6 previous.

Further, German economy expanded 0.3% QoQ in Q3 vs. -0.2% expected and compared to 0.1% reported in Q2, preliminary report published by Destatis showed on Friday.

The annualized GDP rate rose by 1.1% in Q3 against the previous reading of 1.8% and beating the market expectations at 0.7%.

Upbeat German GDP data failed to support the pair. While, novel UK leadership-infused optimism keeps the pound supported.

Support levels - 0.8605 (110-EMA), 0.8563 (Cloud base)

Resistance levels - 0.8667 (5-DMA), 0.8707 (20-DMA)

Summary: EUR/GBP pivotal at 110-EMA support. Break below will see more weakness in the pair. Drag till 200-DMA at 0.8498 cannot be ruled out in the near-term.