FxWirePro: EUR/GBP on track to test 88.6% Fib at 0.8675, stay short

EUR/GBP chart on Trading View used for analysis

• The Office for National Statistics is scheduled to report on Friday, November 9 at 9:30 GMT.
   
• UK Q3 GDP is expected to rise 0.6%, up from 0.4% in Q2 and 0.2% in the adverse weather-hit first quarter of 2018.
   
• Analysts expect consumption and net trade to be the main drivers behind the rise as business investment and manufacturing slowdown are depressed by Brexit uncertainty. 
   
• Technical analysis for the pair supports further downside. Next bear target lies at 88.6% Fib at 0.8675.
   
• The pair has broken strong trendline support at 0.8740 and momentum is with the bears.
   
• Breach below 88.6% Fib could see further weakness, while break and close above 5-DMA could see minor upside.

Support levels - 0.8675 (88.6% Fib), 0.8620 (Apr 7 low), 0.86

Resistance levels - 0.8712 (5-DMA), 0.8745 (trendline), 0.88

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-extends-weakness-below-200-DMA-scope-for-test-of-786-Fib-at-08723-1453251) has hit TP1/2.

Recommendation: Book partial profits at lows. trail SL to 0.8725, hold for further downside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.