EURGBP Turns Lower After Better UK GDP and Construction Data
EURGBP is 0.15% lower at 0.8434 after stronger GDP data out of the UK. The UK December monthly GDP came in at +0.3% beating the forecasts of +0.2%, the previous reading was at 0.4%. Compared with the same quarter last year, UK GDP reading came in at 1.1% topping the expectations of 0.8%, the last reading was at 1.1%. The data shows a pick up after the Boris Johnson win in December election.
The UK factory data also released, showing that the Manufacturing production came in at +0.3% below the expectations of +0.5%. The yearly Manufacturing production reported at -2.5% also below the forecasts of -1.0%. The monthly industrial production came in at +0.1% below the estimates of +0.3%. The Construction output came in at +0.4% topping the estimates of -0.4%.
EURGBP trades close to daily lows after the stronger GDP and construction dat from the UK. The technical outlook is bearish and now supported by the fundamentals too.
On the downside, immediate support for the EURGBP stands at 0.8431 the daily low. Next support area for the EURGBP would provide the low from February 3 trading session at 0.8407. A break below that level might pave the way for a move down to 0.8359 the low from December 17th.
Looking north, first resistance for the EURGBP will be met at 0.8458 the daily top. The 50-day moving average would provide the next resistance at 0.8489. Next resistance stands at 0.8539 the high from February 4th session.