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FxWirePro: EUR/GBP retraces above 200-DMA, pound depressed following disappointing UK macro data

EUR/GBP chart - Trading View 

EUR/GBP spiked higher on the day, extending its retrace from multi-month lows at 0.8861 hit on Wednesday's trade.

The pair has retraced dip below 200-DMA and was trading at 0.8958, up 0.61% on the day at 09:40 GMT.

The British pound under pressure after some disappointing UK macro data earlier today.

Data from the Office for National Statistics (ONS) showed UK economy expanded by 1.1% in September and 15.5% during the third quarter of 2020, both missing consensus estimates.

Also, UK Industrial and Manufacturing Production figures for September also fell short of market expectations.

UK Manufacturing output arrived at 0.2% MoM in September versus 1.0% expectations and 0.7% booked in August, while total industrial output came in at 0.5% vs. 0.8% expected and 0.3% last.

Poor data along with persistent Brexit-related uncertainties continue to undermine the British pound.

EUR/GBP trades with a bearish bias, but retrace above 200-DMA has raised scope for more upside.

Weekly cloud is strong support. The pair has formed a 'Golden Cross' on the weekly charts which could aid further gains. 
 

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