FxWirePro: EUR/GBP capped at 21-EMA ahead of EU Q4 GDP data, bias neutral

EUR/GBP chart on Trading View used for analysis

• EUR/GBP is trading largely unchanged at the time of writing after hitting session highs at 0.8770 and lows of 0.8754.
   
• Technical indicators for the pair do not provide a clear directional bias.
   
• Germany narrowly escapes recession after flat growth in Q4, supporting views that Europe's largest economy is slowing down.
   
• Preliminary data showed growth of 0.0 percent in the fourth quarter, below a forecast of 0.1 percent.
   
• Focus shall be on EU preliminary Q4 GDP data for further impetus. 
   
• The Union's slowing growth has been one of the reasons for the latest EUR weakness, and poor data could exacerbate its decline.
   
• Upside remains capped below 21-EMA which is stiff resistance at 0.8784. Break above required for further upside.
   
• Rejection at 21-EMA and resumption of weakness could see dip till 0.8620 (major trendline)

Support levels - 0.8751 (20-DMA), 0.8723 (Oct 10 low), 0.8620 (trendline)

Resistance levels - 0.8784 (21-EMA), 0.8835 (55-EMA), 0.8855 (110-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.