EUR to GBP jumps higher after the UK GDP data for November disappoints. The GDP came in at -0.3% well below the expectations of 0.0% the lowest since June 2012. The UK Manufacturing Production came in at -1.7% below the market consensus of -0.3% in November.
The factory activity is weaker as the data reflect a period before the general elections and all the uncertainty around Brexit. The Industrial Production also came much weaker at -1.2% below the expectations of -0.1%. The UK Total Trade Balance came in at £4.031B topping the expectations of £-2539B.
EURGBP gets a boost from weaker data that came out of UK. The pair is 0.72% higher 0.8571 close to daily highs. EURGBP managed to surpass the 50-day moving average and that gives a bullish note for the pair.
On the upside immediate resistance for EURGBP will be met at 0.8575 the daily top. The high from November 7th at 0.8658 is the next supply zone. In case the pair breaks above then the next target to the upside will be at the 100-day moving average at 0.8684.
On the downside, first support for EURGBP pair stands at 0.8519 the daily low. Next level to the downside for the bears to watch is at 0.8453 the low from December 31st. If the pair breaks below then the next support area will be met at 0.8356 the low from December 17th.