FxWirePro: EUR/GBP finds stiff resistance at 200-DMA, decisive break above to fuel further gains

Chart - Courtesy Trading View 

EUR/GBP was trading 0.07% lower on the day at 0.8421 at around 10:50 GMT.

The pair has been capped at 200-DMA resistance from the past three sessions, break above required for further gains.

The Eurozone Sentix Investor Confidence index came in at -25.2 in August from -26.4 in May, lower than -24.7 expected. 

The current situation index was up very slightly at -16.3 in August after falling to -16.5 in the previous month.

The expectations index rose to -33.8, still close to its July level, which was the lowest since December 2008.

Data shows a recession in the euro zone is still very likely. The index extended its recovery but failed to shake off recession fears.

The ongoing political jitters in Italy’s also keep the pair depressed. Also, Moody’s cut Italy’s outlook from “Stable” to “Negative”, while keeping the sovereign rating at Baa3.

Technical indicators for the pair keep scope for upside continuation. MACD is on verge of bullish crossover on signal line.

Support levels - 0.8396 (5-DMA), 0.8390 (200H MA)

Resistance levels - 0.8437 (21-EMA), 0.8466 (110-EMA)

Summary: EUR/GBP pivotal at 200-DMA resistance. Watch out for decisive break above for upside continuation.