FxWirePro: EUR/GBP trapped between 21 and 110-EMA, breakout to provide clear direction

Chart - Courtesy Trading View 

Spot Analysis:

EUR/GBP was trading 0.19% lower on the day at 0.8650 at around 10:20 GMT.

Previous Week's High/ Low: 0.8822/ 0.8668

Previous Session's High/ Low: 0.8680/ 0.8631

Fundamental Overview:

Data released earlier on Wednesday showed Eurozone Manufacturing purchasing managers index (PMI) arrived at 47.3 in November vs. 46.0 expectations and 46.4 last. 

The bloc’s Services PMI stood at 48.6 in November vs. 48.0 expected and October’s 48.6. While Composite climbed to 47.8 in November vs. 47.0 estimated and 47.3 previous. 

Further, German Manufacturing PMI came in 46.7 at this month vs. 45.0 expected and 45.1 prior. 

Services PMI eased from 46.5 booked previously to 46.4, while Composite Output Index arrived at 46.4 in November vs. 44.9 expected and October’s 45.1. 

Euro buoyed across the board after eurozone manufacturing PMI data beat expectations.

Technical Analysis:

- EUR/GBP recovery rejected at 21-EMA

- The pair slips lower from session highs at 0.8701

- Momentum is bearish, Stochs and RSI are sharply lower, RSI below 50

- Price action below 200H MA, GMMA indicator shows bearish shift on the intraday charts

Major Support and Resistance Levels:

Support - 0.8631 (110-EMA), Resistance - 0.8719 (200H MA)

Summary: EUR/GBP trapped between major moving averages. Sideways to continue till the pair shows a decisive breakout.