FxWirePro: EUR/GBP rangebound below daily cloud, single currency subdued on downbeat Eurozone Sentix data

EUR/GBP chart - Trading View 

EUR/GBP was trading largely rangebound on the day at 0.8572 at around 10:00 GMT.

The pair is set to resume downside after failure to break above stiff resistance at daily cloud.

Common currency depressed after downbeat Eurozone Sentix data, dents chances for any upside.

Data published by the Sentix research group showed on Monday that Eurozone’s investor sentiment extends its uptrend in July, but missed market expectations.

Eurozone Sentix Investor Confidence index improved to 29.8 in July, from 28.1 in June, but missed 30.0 expected.

The Sentix current conditions index jumped to 29.8 points in the reported month, while in Euroland, expectations eased further to 29.8 points.

On the other side, UK services sector activity expanded more than expected in June, the final report from IHS Markit confirmed this Monday.

The seasonally adjusted IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) was revised higher to 62.4 in June versus 61.7 expected and a 61.7 – last month’s flash reading.

Technical bias for the pair is majorly bearish. GMMA indicator on the weekly charts is strongly bearish.

Upside is capped at 55-EMA and daily cloud. RSI has slipped below 50 mark and is biased lower. 

Price action is hovering around 76.8% Fib and is on track to test major trendline support at 0.8509. Bearish invalidation only above 55-EMA.