FxWirePro: EUR/GBP fades early gains, slips lower from 8-month high

Chart - Courtesy Trading View 

EUR/GBP fades initial gains and was trading 0.06% lower on the day at 0.8574 at around 08:50 GMT.

The pair hit 8-month highs at 0.8618 after poor UK GDP data, before paring some gains to slip lower.

Data released earlier on Thursday showed UK’s first readings of the Q1 2022 GDP eased to 0.8% QoQ, below 1.0% forecasts.

On a month-on-month basis, GDP posted a negative print of -0.1% for March, versus +0.1% expected and prior.

UK Industrial Production and Manufacturing Production data for March also disappointed market expectations, weighing on the pound.

Apart from poor data, Brexit woes also weigh on the British pound and are likely to keep the pair buoyed.

Major Support Levels: 

S1: 0.8558 (5-DMA)

S2: 0.8496 (200H MA)

Major Resistance Levels: 

R1: 0.8591 (110-week EMA)

R2: 0.86

Summary: EUR/GBP slips lower from 8-month highs, but outlook remains bullish. Price action is still above 200H MA and retrace below will see some weakness.