FxWirePro: EUR/GBP recovery capped at 5-DMA, stay short below 200-DMA at 0.8833

EUR/GBP chart on Trading View used for analysis

• EUR/GBP recovery capped at 5-DMA at 0.8871, bias slightly bearish.
  
• The pair is extending gains on the day gains despite weaker German Ifo data.
  
• German Ifo business climate index printed at 102.00 for Nov, missing consensus estimates for a reading of 102.3.
  
• The euro supported by narrowing Italian-German bond yield spread after reports that Italy was looking to discuss a lower 2019 budget deficit target to 2-2.1% of GDP.
  
• Weaker German Ifo business survey fails to dampen the prevalent positive tone around the single currency.
  
• Technical studies are slightly bearish. 5-DMA caps upside and is sharply lower.
  
• Strong support is seen at 200-DMA at 0.8833, break below to see further weakness.

Support levels - 0.8833 (200-DMA), 0.88 (20-DMA), 0.8723 (Oct 10 low)

Resistance levels - 0.8870 (5-DMA), 0.89, 0.8932 (Nov 19 high)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.