FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP was trading 0.65% higher on the day at 0.8651 at around 11:25 GMT. The pair has snapped at two-day bearish streak and has edged above 5-DMA. 

Upbeat Eurozone GDP and employment data support euro bulls ahead of the ECB policy meeting.

Eurozone economy expanded by 0.8% on the quarter in Q2 vs. 0.6% prior, beating market consensus was for a reading of 0.6%.

On an annualized basis, the bloc’s GDP rate rose by 4.1% in Q2 vs. 3.9% booked in the first estimate while matching 3.9% expectations.

Meanwhile, the bloc’s Q2 Employment Change printed at 0.4% QoQ and 2.7% YoY, also beating expectations across the time horizon.

Investors await interest rate decision by the European Central Bank (ECB). Consensus suggests ECB President Christine Lagarde will announce a rate hike by 50 basis points (bps).

Technical bias for the pair is bullish. GMMA indicator shows major and minor trend are bullish. 

Support levels - 0.8622 (5-DMA), 0.8589 (200H MA)

Resistance levels - 0.8683 (Upper BB), 0.8699 (200-week MA)

Summary: EUR/GBP trades with a bullish bias. The pair is on track to test 200-week MA resistance. Decisive break above required for further gains.