Chart - Courtesy Trading View
Spot Analysis:
EUR/GBP was trading largely unchanged at 0.8346 at around 10:00 GMT.
Previous Week's High/ Low: 0.8455/ 0.8367
Previous Session's High/ Low: 0.8372/ 0.8338
Fundamental Overview:
Data released earlier on Friday showed Germany's industrial output fell by 0.2% MoM in Nov, versus a 1.0% rise expected and 2.4% last.
On an annualized basis, the German industrial production declined by 2.4% in November versus a 0.9% drop registered in October.
Price action is consolidating break above 200-DMA. Momentum indicators are bullish. Volatility is high and rising.
Focus now on eurozone inflation data. Core CPI is expected at 2.5% on a yearly basis in December, down from 2.6% in November. The annual CPI is forecast to edge lower to 4.7% from 4.9%.
Technical Analysis:
- EUR/GBP has broken major trendline support
- Price action is below cloud and major moving averages
- Momentum is bearish, volatility is high and rising
- GMMA indicator shows major and minor trend are strongly bearish
Major Support and Resistance Levels:
Support - 0.8305 (Lower BB), Resistance - 0.8390 (Trendine)
Summary: EUR/GBP break below major trendline support has opened downside. Further weakness on cards. Dip till 0.83 likely.
