EUR/GBP: Bearish MA cross confirmed ahead of UK GDP, manufacturing data
- The bearish crossover between the 50- and 200-hour moving averages (MAs) indicates the path of least resistance for EUR/GBP is to the downside.
- UK manufacturing data could beat estimates as PMI had hit six-month highs in December.
The EUR/GBP pair is currently trading at 0.8755 and risks falling to last week's low of 0.8728, as the hourly chart MAs have turned bearish.
The 50-day MA has crossed the 200-day MA from above in favor of the bears. That bearish setup, however, would fail if the UK data, due at 09:30 GMT, prints below estimates.
The fourth quarter growth rate is seen slowing to 0.2 percent quarter-on-quarter, following a 0.6 percent rise in the third quarter.
The manufacturing production is seen rising 0.1 percent month-on-month in December, following at 0.3 percent contraction in November. This data could beat estimates, as the manufacturing PMI had hit six-month highs in December on the back of strong inflows of export orders. In that case, the pair could probe support at 0.8728, as indicated the bearish 1H MA crossover.
Apart from data, the pair could also take cues from Brexit developments.
EUR/GBP Technical Levels