FxWirePro: EUR/GBP hits 5-week lows at 0.8944, outlook bearish

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.04% higher on the day at 0.8978 at around 10:18 GMT, outlook is bearish.

The pair slumped lower on the day to hit 5-week lows below 0.90 handle after UK Retail Sales beats estimates.

Data released earlier today showed UK Retail Sales came in at +3.6% MoM in July, beating estimates at 2.0% and compared to 13.9% previous.

The pair erased losses and edges higher from session lows after German Preliminary Manufacturing PMI comes in better than expected. 

According to the preliminary manufacturing activity report from IHS/Markit research, German manufacturing sector improved further in August to 53.0 vs. 52.5 expected.

Meanwhile, Services PMI fell to a two-month low level of 50.8 from 55.6 recorded in July.

EUR/GBP has breached 'Symmetric Triangle' pattern and trades with a bearish bias. Price action is holding cloud support and breach below will drag prices lower. 

Break below cloud could see test of 200-DMA support at 0.8762. Retrace above 21-EMA (0.9024) negates bearish bias.