FxWirePro: EUR/GBP hits 7-week low, single currency unimpressed by upbeat German GDP data

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.17% lower on the day at 0.9013 at around 10:30 GMT, further weakness on charts. The pair is extending downside below daily cloud and has breached 110-EMA support raising scope for further weakness.

Data Watch:

Eurozone Preliminary CPI steadies at -0.3% YoY in October, inline with expectations and -0.3% previous.

Eurozone September Unemployment Rate arrived at 8.3%, matching expectations at 8.3% and compared to 8.1% previous.

Eurozone Preliminary GDP rebounds to 12.7% QoQ in Q3 beating expectations at 9.4%.

German Preliminary GDP expands at 8.2% in Q3, above 7.3% expected. Annualized German GDP stands at -4.3% in Q3 vs. -11.3% expected.

Technical Analysis: Bias Bearish

- Stochs and RSI are sharply lower, RSI is well below the 50 mark

- Price action has broken below the 110-EMA support

- Volatility is rising as evidenced by widening Bollinger bands

- GMMA indicator shows minor trend is sharply lower and major trend is turning bearish

Support levels - 0.8960 (trendline), 0.8902 (200-DMA), 0.8834 (110W EMA)

Resistance levels - 0.9065 (50-DMA), 0.9078 (Cloud base), 0.9125 (Upper BB)

Summary: The common currency largely unimpressed despite upbeat German GDP data. Worsening COVID situation to keep the euro under pressure. Scope for test of trendline support at 0.8960. Further weakness will see dip till 200-DMA.