FxWirePro: EUR/GBP consolidates at 2-month lows, focus on UK GDP and industrial output data

EUR/GBP chart - Trading View 

EUR/GBP was extending marginal gains on the day, trading 0.04% higher at 0.8877 at around 05:00 GMT.

Price action has broken crucial supports at 200-DMA and Symmetric Triangle base, opening downside in the pair.

The pair hit fresh 2-month lows at 0.8869, before paring some losses. Downside bias intact. 

Technical indicators support weakness in the pair. Stochs and RSI are sharply lower, momentum strongly bearish.

Volatility is rising as evidenced by widening Bollinger bands. GMMA indicator shows near-term trend is strongly bearish.

The pair is pausing at minor trendline support at 0.8865. Violation there could accentuate weakness.

GBP bulls remain buoyed amid expectations that the BOE will keep the interest rates unchanged at least until 2024 to avoid negative rates.

Also supporting the pound was some optimism around the coronavirus situation in the UK after reports that tougher restrictions were starting to have an effect.

Focus now on critical UK economic releases, including the monthly GDP and industrial output data for impetus.

Breach at trendline support at 0.8869 eyes next major support at 200W MA at 0.8829. Further weakness only on break below.