FxWirePro: EUR/GBP confirms 'Death Cross' on the weekly charts, more downside likely

EUR/GBP chart - Trading View 

EUR/GBP was trading slightly weaker on the day, at 0.8485 at around 09:45 GMT.

The pair has breached major trendline support at 0.8515, close below will accentuate downside.

A 'Death Cross' (bearish 50-DMA crossover on 200-DMA) confirmed on the weekly charts adds to the bearish bias.

On the data front earlier today, Industrial Production in Germany surprised markets to the downside in June, suggesting that the recovery in the manufacturing sector is dwindling.

Data published by German federal statistics authority Destatis showed seasonally adjusted industrial output unexpectedly fell by 1.3% MoM, missing expectations for a 0.5% rise and -0.8% last.

On an annualized basis, the German industrial production rose by 5.1% in June versus 11% expected and a 16.6% growth reported in May.

The shared currency attracted some selling interest after industrial output fell short of expectations in Italy and Spain as well.

On the other side, Bank of England’s hint about modest tightening continued acting as a tailwind for the British pound, dragging the pair lower.

110-month EMA is strong support at 0.8473. Breach below will open downside for test of 200-month MA at 0.8141.