FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP was trading 0.54% higher on the day at 0.8822 at around 13:30 GMT.

The pair is extending break into the daily cloud, spikes higher for the second straight session.

The final revision of UK Q3 GDP data confirmed on Thursday that the UK economy contracted by 0.3% QoQ, more than -0.2% expected and compared to -0.2% prior.

On an annualized basis, UK GDP increased by 1.9% in Q3 vs. 2.4% registered in the first estimate while missing expectations at 2.4%.

Meanwhile, the UK Q3 Current Account arrived at £-19.402 when compared to the £-33.224B expected and £-35.086B in the prior quarter.

The country’s Total Business Investment data for the third quarter stood at 1.3% QoQ and -2.5% YoY.

Momentum is bullish. Stochs and RSI are sharply higher. Volatility is high and rising. MACD is on verge of bullish crossover on signal line. 

The pair is extending break above 200-week MA and is edging further into the daily cloud. Scope for further upside.

Support levels - 0.8452 (5-DMA), 0.8680 (21-EMA)

Resistance levels - 0.8828 (Nov 2022 high), 0.8908 (Upper week BB)

Summary: EUR/GBP trades with a bullish bias. Potential Double Top at 0.8828 weighs on the upside. Decisive close above 0.8828 will confirm further gains in the pair.