FxWirePro: EUR/GBP back-to-back Dojis keep scope for further weakness

Chart - Courtesy Trading View 

Spot Analysis:

EUR/GBP was trading largely unchanged at 0.8346 at around 10:00 GMT.

Previous Week's High/ Low: 0.8455/ 0.8367

Previous Session's High/ Low: 0.8372/ 0.8338

Fundamental Overview:

Data released earlier on Friday showed Germany's industrial output fell by 0.2% MoM in Nov, versus a 1.0% rise expected and 2.4% last.

On an annualized basis, the German industrial production declined by 2.4% in November versus a 0.9% drop registered in October.

Price action is consolidating break above 200-DMA. Momentum indicators are bullish. Volatility is high and rising. 

Focus now on eurozone inflation data. Core CPI is expected at 2.5% on a yearly basis in December, down from 2.6% in November. The annual CPI is forecast to edge lower to 4.7% from 4.9%.

Technical Analysis:

- EUR/GBP has broken major trendline support

- Price action is below cloud and major moving averages

- Momentum is bearish, volatility is high and rising

- GMMA indicator shows major and minor trend are strongly bearish

Major Support and Resistance Levels:

Support - 0.8305 (Lower BB), Resistance - 0.8390 (Trendine)

Summary: EUR/GBP break below major trendline support has opened downside. Further weakness on cards. Dip till 0.83 likely.