FxWirePro: EUR/GBP rangebound, focus on UK construction/manufacturing output and trade data

Technical Analysis:

• EUR/GBP rejected at 50% Fib of 0.9225 to 0.8304 fall at 0.8765.
• The pair is trading an extremely narrow range in the Asian session.
• Immediate support is seen at 5-DMA at 0.8626. 
• Trend remains higher, momentum studies remain bullish
• ADX supports uptrend, Bollinger bands are widening.

Fundamental factors:

• Pound Sterling saw massive slump across the board on renewed ‘hard-Brexit’ worries post PM Theresa May's comments.
• Pound continues to remain vulnerable to the repricing of a 'hard Brexit' scenario.
• Focus now on BOE Governor Carney’s testimony before the Treasury Select Committee on Wednesday as Brexit concerns resurface.
• UK manufacturing and industrial production data is due on cards later in the European session.
• Societe Generale says U.K. manufacturing output is likely to have recovered in Nov, predict manufacturing output to bounce by 0.7 % m/m in Nov after a fall of 0.9 % m/m in Oct

TIME    TREND INDEX    OB/OS INDEX    

1H          Neutral                   Neutral
4H          Bearish                  Neutral, Bias higher                
1D          Neutral                   Neutral
1W         Bullish                    Neutral, Bias higher    

Support levels - 0.8656 (38.2% Fib), 0.8629 (100-DMA), 0.86

Resistance levels - 0.8698 (Jan 9 high), 0.87, 0.8765 (50% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-breaks-100-DMA-at-08626-good-to-go-long-on-dips-478215) has achieved all targets.

Recommendation: Wait for clear indication on Technicals.