FxWirePro: German economic sentiment continues to deteriorate, EUR/GBP extends weakness below 200-DMA

Chart - Courtesy Trading View 

EUR/GBP was trading 0.10% lower on the day at 0.8418 at around 09:20 GMT, outlook bearish.

Data released earlier on Tuesday showed German ZEW Economic Sentiment Index declined to -55.3 in August from -53.8 in July, worse than the market expectation of -53.8. 

The Economic Sentiment Index for the eurozone slumped to -54.9 from -51.5, missing analysts' forecasts of -42.5 by a wide margin.

The shared currency stays on the backfoot after dismal ZEW survey data stokes fears of economic slowdown.

On the other side, mixed UK ILO employment data fail to impress GBP bulls, could keep downside in the pair limited.

The UK Office for National Statistics reported that the number of people claiming unemployment-related benefits fell by 10.5K in July against the 32K fall anticipated. The UK unemployment rate, meanwhile, was unchanged at 3.8% during the three months to June.

EUR/GBP remains capped below 200-DMA, GMMA indicator has turned bearish on the intraday  charts.

Price action is below 200H MA and volatility is rising. Momentum is bearish, RSI is below 50 mark. Scope for further weakness.