FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP was trading 0.24% lower on the day at 0.8574 at around 13:00 GMT, scope for further downside. 

The German ZEW Economic Sentiment Index improved sharply to -23.3 in December from -36.7 in November, beating market expectation of -26.4. 

The Current Situation Index rose to -61.4 from -64.5 but missed market expectation of -57. Further, the Eurozone ZEW Economic Sentiment Index rose to -23.6 from -38.7. 

On the UK front, data released by the Office for National Statistics (ONS) earlier on Tuesday showed UK’s ILO Unemployment Rate rose from 3.6% to 3.7% in October vs. the 3.7% expected.

The claimant count change showed an unexpected jump by 30.5K in November when compared to -6.4K booked previously and -13.3K expectations.

Support levels:

S1: 0.8574 (55-week EMA)

S2: 0.8546 (200-DMA)

Resistance levels:

R1: 0.8594 (5-DMA)

R2: 0.8627 (20-DMA)

Summary: EUR/GBP trades with a bearish technical bias. Next immediate major support lies at 200-DMA at 0.8546. Break below will plummet prices.