FxWirePro: EUR/GBP shows signs of exhaustion, break below 55H EMA to see further weakness

EUR/GBP chart - Trading View 

EUR/GBP was trading largely rangebound at 0.9106 at around 10:35 GMT. 

The pair is showing signs of exhaustion after the bull run and weak German ZEW further weighs down the pair. 

The German ZEW headline numbers for March showed that the Economic Sentiment Index came in at -49.5 versus -26.4 expectations and 8.7 last, the lowest in ten years.

The sub-index Current Conditions figure arrived at -43.1 in March versus -30.0 expected and -15.7 booked previously.

UK employment details for February were mixed. The unemployment rate increased from 3.8% to 3.9% in January, while wage growth excluding bonuses decelerated from 3.2% to 3.1%.

Also, the UK government’s controversial approach to coronavirus pandemic caps the pound and hence cushions downside in the pair. 

Major trend in the pair is bullish. But, highly overbought oscillators and 'Doji' at highs raises scope for minor pullback.

Immediate support is seen at 55H EMA at 0.9039, break below will see minor weakness. Next major support lies at 5-DMA at 0.8987.

On the flipside, resumption of upside will see test of 88.6% Fib at 0.9204.