FxWirePro: EUR/GBP fades initial gains, fails to hold break above 5-DMA, outlook bearish

EUR/GBP chart - Trading View 

Technical Analysis: Bias Bearish

- EUR/GBP fades initial gains, slips lower from session highs at 0.8651

- The pair set to extend plunge deeper into the monthly cloud

- Recovery attempts falter at 21-EMA, bias remains bearish

- Price action is below major moving averages, momentum strongly bearish

- The pair ignores spinning top at lows and is on track to extend weakness

Support levels - 0.8538 (previous week's low), 0.85, 0.8466 (110-month EMA)

Resistance levels - 0.8636 (5-DMA), 0.8687 (converged 21-EMA and 55-month EMA), 0.87 (23.6% Fib)

Summary: The single currency remains unfazed by mixed German Factory data. Technical bias for EUR/GBP remains strongly bearish. Scope for retest of previous week lows at 0.8538 ahead of 110-month EMA at 0.8466.