FxWirePro: EUR/GBP subdued ahead of German IFO data, weakness likely on break below 20-DMA at 0.8757

• EUR/GBP remains subdued below 5-DMA as markets await German IFO data due ahead in the EU session.
   
• Analysts at Danske Bank expect the German Ifo expectation index to decline to 106.1 in June.
   
• Nomura analysts expect the German Ifo business climate index to increase to 115.2 in June from 114.6 in May.
   
• Start of ECB’s Sintra conference will be the most watched event for today’s economic calendar.
   
• Technical indicators are slightly bearish for the day. RSI and stochs are biased lower. Bearish divergence on RSI and Stochs raises scope for downside. 
   
• Break below 20-DMA support at 0.8757, raises scope then for test of 0.8651 (38.2% Fib of 0.92253 to 0.8297 fall). Violation at 38.2% Fib will see test of 200-DMA at 0.8622. 
   
• Upside remains capped at 61.8% Fib at 0.8870, bearish invalidation on break above.
   

Support levels - 0.8757 (20-DMA), 0.8651 (38.2% Fib of 0.92253 to 0.8297 fall), 0.8622 (200-DMA)

Resistance levels - 0.8800 (5-DMA), 0.8845 (June 21 high), 0.8870 (61.8% Fib)

Recommendation: Good to go short on break below 20-DMA at 0.8757, SL: 0.88, TP: 0.87/ 0.8650

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