FxWirePro: EUR/GBP snaps 3-day bearish streak, bounces off cloud support

Chart - Courtesy Trading View 

Spot Analysis:

EUR/GBP was trading 0.29% higher on the day at 0.8817 at around 09:30 GMT.

Previous Week's High/ Low: 0.8928/ 0.8797

Previous Session's High/ Low: 0.8886/ 0.8786

Fundamental Overview:

The headline German IFO Business Climate Index advanced to 91.1 in February versus the previous reading of 90.2 and the forecast of 91.4.

Meanwhile, the Current Economic Assessment dropped to 93.9 points in the reported month as against January’s 94.1 and 95.0 expected.

The IFO Expectations Index – indicating firms’ projections for the next six months, increased to 88.5 in February from the previous month’s 86.4 and against the estimates of 88.3.

The UK PMIs released on Tuesday indicated that business activity rose more than expected in February and fueled optimism that the country may be able to avoid a steep economic downturn.

Technical Analysis:

- EUR/GBP has held support at daily cloud

- Price action has retraced above 55-EMA

- The pair trades below 200H MA

- GMMA indicator shows major trend is neutral, while minor trend is bearish

Major Support and Resistance Levels:

Support - 0.8804 (55-EMA), 0.8746 (110-EMA)

Resistance - 0.8843 (21-EMA), 0.8857

Summary: EUR/GBP recovery attempt lacks traction. Technical bias is bearish, break below cloud top will see more weakness.