FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

Technical Analysis:

- EUR/GBP was trading 0.70% lower on the day at 0.8782 at around 12:50 GMT

- Chikou span is biased lower, MACD supports downside in the pair

- GMMA indicator shows major trend is bullish, while minor trend is turning bullish

- Momentum is bearish, Stochs are near oversold levels and RSI is biased lower

Data Released:

Data released earlier today showed UK Gross Domestic Product (GDP) contracted 0.3% MoM in August, missing 0% expectations and 0.2% previous.

Meanwhile, the Index of services (August) came in at -0.1% 3M/3M vs. 0.2% estimate and -0.2% prior.

UK industrial sector recovery also lost momentum in August, the latest data published by Office for National Statistics (ONS) showed on Wednesday.

UK Manufacturing output fell to -1.6% MoM in August missing 0% expectations and 0.1% prior, while total industrial output came in at -1.8% vs. -0.2% expected and -0.3% last.

On an annualized basis, the UK manufacturing production figures printed at -6.7% in August, missing expectations of 0.8%. 

Total industrial output plunged by 5.2% in same month against a 0.6% reading expected and the previous 1.1% print. 

On the other side, Eurozone’s Industrial Production increased more than expected in August, the official data published by Eurostat showed on Wednesday.

Eurozone’s industrial output jumped by 1.5% MoM vs. a 0.6% increase expected and -2.3% last.

On an annualized basis, the industrial output rose by 2.5% in August versus a 1.2% rise expected and July -2.5%.

Major Support and Resistance Levels:

Support levels - 0.8760 (21-EMA), Resistance levels - 0.8803 (5-week MA)

Summary: EUR/GBP extends choppy trade above 21-EMA support. Technical indicators do not provide a clear directional bias.