EUR/GBP chart on Trading View used for analysis
- EUR/GBP extends weakness ahead of UK GDP data, technical bias remains bearish.
- UK and the European Union look set to find an interim deal ahead of a fast-approaching November deadline.
- GDP data will be in focus, with the headline figure forecast to print at 0.1%, a slight contraction from the previous month's 0.3%.
- Renewed Brexit hope keeps the pound buoyed. But a miss on the expected GDP reading could dent GBP bulls.
- The pair has broken strong 200-DMA support and is extending weakness below.
- Price action below major EMAs which are sloping downward in support of further weakness.
- Stochs and RSI are sharply lower with MACD and DMI supporting downside. Bollinger Bands are widening which shows rising volatility.
- We see scope for weakness. Next immediate bear target lies at 78.6% Fib at 0.8722. Break there could see further downside.
- Close above 5-DMA at 0.8775 could see test of 200-DMA. Retrace above 200-DMA negates bearish bias.
Support levels - 0.8722 (78.6% Fib), 0.87, 0.8675 (88.6% Fib)
Resistance levels - 0.8775 (5-DMA), 0.8803 (61.8% Fib), 0.8836 (200-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-below-200-DMA-eyes-786-Fib-at-08723-good-to-go-short-on-upticks-1440294) in progressing well.
Recommendation: Hold for targets.
