FxWirePro: EUR/GBP consolidates break below 200-DMA, downward trajectory intact

EUR/GBP chart - Trading View 

EUR/GBP hits fresh multi-month lows 0.8863 before paring some losses to trade at 0.8889 at around 10:00 GMT.

Price action is grinding lower for the 3rd consecutive session. The pair is consolidating break below 200-DMA and downward trajectory largely intact.

Euro dented by dovish comments from Bank of Spain chief economist, Oscar Arce, who said that the ECB must introduce additional stimulus in December to reduce the risk of deflation in the eurozone.

Rising coronavirus cases across Europe keeps sentiment down. Italy is under pressure to announce a nationwide lockdown. In Germany, which announced a relatively light shuttering, cases and deaths continue rising. 

On the otherside, renewed hopes for a last-minute Brexit deal keep the British pound supported. 

The pair was trading 0.11% lower on the day after closing 0.79% lower in the previous session. Price action has breach crucial support levels raising scope for further downside.

Technical indicators have turned bearish. GMMA indicator shows minor trend is strongly bearish.

Stochs and RSI are biased lower and RSI is well below the 50 mark. Volatility is rising as evidenced by widening Bollinger bands.

Price action has slipped below the 0.89 handle, scope for test of 110W EMA at 0.8838 ahead of 200W MA at 0.8811.