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FxWirePro: EUR/GBP tests 21-EMA support, bias turns bearish

Chart - Courtesy Trading View 

EUR/GBP was trading 0.48% lower on the day at 0.8568 at around 13:20 GMT.

The pair is slipping lower for the second straight session, dips below 21-EMA.

The shared currency stays under selling pressure after Fitch Ratings Agency's comments.

Fitch said in a report published on Thursday. "A technical recession in the eurozone is now an increasing possibility."

On the data front, seasonally-adjusted Unemployment Rate in the euro area declined to 6.6% in May from 6.7% in April, better than the market expectation of 6.8%.

Further, Germany's Retail Sales rose by 0.6% MoM in May versus 0.5% expected and -5.4% last.

On an annualized basis, the bloc’s Retail Sales came in at -3.6% in May, below -2.0% expected and -0.4% booked in April.

EUR/GBP is extending weakness below 21-EMA. Golden Cross on the daily charts is likely to keep downside limited.

The pair has slipped below 200H MA. Next major support aligns at 55-EMA at 0.8514. Bullish invalidation only below 200-DMA.

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