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  |   Technicals


FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP slips lower from session highs at 0.8466, trades 0.05% lower on the day at 0.8449 at around 06:45 GMT.

The pair is consolidating break above 200-DMA, struggles at 110-EMA which is offering stiff resistance at 0.8465.

Data published by ONS earlier on Friday showed UK GDP and Manufacturing Production slipped lower from the previous month, but bettered expectations. 

The British pound slightly bid after better than expected data, pulls EUR/GBP lower from session highs.

The British economy contracted 0.1% QoQ in Q2 when compared with a 0.8% growth booked in Q1, beating -0.2% forecast.

Further, UK manufacturing output arrived at -1.6% MoM in June versus -1.8% expectations and 1.7% booked in May while industrial output came in at -0.9% vs. -1.3% expected and 0.9% last.

EUR/GBP is consolidating break above 200-DMA. Technical indicator point to further upside in the pair. Bullish invalidation likely on retrace below 200-DMA. 

Support levels:

S1: 0.8436 (200-DMA)

S2: 0.8418 (200H MA)

Resistance levels:

R1: 0.8465 (110-EMA)

R2: 0.8493 (55-week EMA)

Summary: EUR/GBP pivotal at 110-EMA resistance. Watch out for decisive break above for further upside. 

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