FxWirePro: EUR/GBP pauses downside at cloud support, outlook bearish after unimpressive German and Eurozone ZEW data

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.04% lower at 0.9036 at around 09:45 GMT, outlook remains bearish.

The pair has been in the red for the 5th straight session and has paused downside at Ichi cloud support.

The single currency remains under pressure following unimpressive German and Eurozone ZEW data.

The German ZEW headline Economic Sentiment Index came in at 56.1 versus 73.0 expectations and 77.4 last. Current Conditions figure arrived at -59.5 in Oct versus -60.0 expected and -66.2 booked previously. 

Further, Eurozone ZEW Economic Sentiment for October printed at 52.3 vs.70.5 expected and compared to 73.9 in the previous month.

On the other side, the British pound remained bid across the board at the beginning of the week on the back of renewed optimism surrounding the UK-EU Brexit negotiation.

Technical analysis also supports weakness for the pair, price action is below 55-EMA, oscillators are biased lower and volatility is rising.

Immediate support lies at daily cloud at 0.9020 ahead of 110-EMA at 0.90. Break below cloud raises scope for dip till major trendline support at 0.8930.