FxWirePro: EUR/GBP inches closer towards trendline support at 0.8470, euro under pressure ahead of ECB monetary policy minutes

EUR/GBP chart - Trading View 

Spot Analysis:

EUR/GBP was trading largely unchanged at 0.8503 at around 11:00 GMT, with session high and low at 0.8522 and 0.8493 respectively.

Previous Week's High/ Low: 0.8658/ 0.8525

Previous Session's High/ Low: 0.8527/ 0.8494

Fundamental Overview:

The ECB will publish its Accounts of the September meeting at 11:30 GMT later in the day and the  central bank's tapering speculations keep the single currency under pressure.

On the data front, the German Industrial Production surprised to the downside in August, data by the federal statistics authority Destatis showed earlier on Thursday.

The bigger-than-expected drop in German August industrial production suggesting that the recovery in Eurozone’s economic powerhouse’s manufacturing sector losing momentum.

Technical Analysis:

- EUR/GBP is extending declines after rejection at 200-DMA resistance

- Price action has been on a bearish streak for the 6th straight session

- Momentum indicators are strongly bearish, volatility is high

- The pair has slipped below daily cloud and MACD and ADX support weakness

Major Support and Resistance Levels:

Support - 0.8470 (Trendline), Resistance - 0.8520 (5-DMA)

Summary: EUR/GBP trades with a bearish bias. Focus on ECB monetary policy minutes for further impetus. Scope for test of trendline support at 0.8470. Breach below will plummet price further.