EURGBP Under Pressure After Weak Germany Industrial Production
EURGBP trading 0.32% lower at 0.8466 as the pair seesaws around the 50-day moving average. The pair is under selling pressure after stronger than expected economic data out of the UK the last two weeks. The UK Services PMI came in at 53.9 beating forecasts of 52.9. The latest Services PMI was the highest for 16 months and above the earlier estimate.
Bad news came for the euro after a big miss from the Germany Industrial Production. The December reading came in at -3.5% below the forecasts of -0.2%. The yearly reading for Germany Industrial Production also was a big miss, the reading came in at -6.8% below the estimates of -4%.
EURGBP as of writing breaks below the 50-day moving average, a move that might attract more sellers and after the weak Germany industrial production. The technical outlook for the pair is bearish and a close below the 50-day moving average might accelerate the selling pressures.
On the downside, immediate support for the EURGBP pair stands at 0.8461 the daily low. Next support level for the EURGBP pair would provide the low from February 3 trading session at 0.8407. A credible break below might open the way for a move down to 0.8359 the low from December 17.
On the upside, first resistance for the EURGBP will be met at 0.8494 the daily top. The next resistance level stands at 0.853 the high from February 4. A bullish breakout will face the next resistance at 0.8588 the 100-day moving average.