FxWirePro: EUR/GBP plummets to three-month low, dismal Eurozone sentiment data drags

Chart - Courtesy Trading View 

EUR/GBP was trading 0.32% lower on the day at 0.8360 at around 11:00 GMT.

The pair is extending weakness for the fifth straight session, outlook is bearish.

Data released earlier today showed Economic sentiment continued to weaken in the euro area.

Economic Sentiment Indicator plummeted in both the EU and the euro area to 97.6 and 99.0 respectively, falling below its long-term average.

Further details of the report showed the Industrial Confidence Index dropped to 3.5 in July from 7 in June and the Services Confidence Index declined to 10.7 from 14.1. 

Finally, the Consumer Confidence Index fell to -27 from -23.8, matching the market expectation.

Technical indicators are biased lower. Momentum is bearish, volatility is high and rising. MACD and ADX support downside.

Support levels - 0.8354 (Lower BB), 0.83

Resistance levels - 0.8427 (5-DMA), 0.8439 (200-DMA)

Summary: EUR/GBP trades with a bearish bias. More downside on cards.