EUR/GBP trades around 0.8560, UK GDP data to provide impetus

• EUR/GBP bulls stay cautious, UK GDP data eyed.  
• Risk-averse sentiment prevalent, US CPI, mighty US dollar hogs limelight.
• EUR/GBP in a mild trading session, forex eyes broader macros.   

EUR/GBP is trading around 0.8560 during the early European session on Thursday ahead of the multiple UK and Eurozone data releases due later in the day as well as on Friday.

The British economic calendar has put traders on edge, with preliminary Gross Domestic Product (GDP) numbers for the third quarter of 2021 to be presented in the next hour. The easing of virus restrictions helped the country to emerge from a pandemic-led slowdown and resulted in an improved second quarter.

However, things have taken a rebound in the third quarter. The cross-currency pair is reeling due to the slow growth in UK Q3, driven by less robust demand and self-isolation restrictions due to rising new cases of COVID-19. In addition to this, the upcoming data release for Manufacturing Production and Industrial Production is adding stress to the pair. Additionally, the grey clouds of the Brexit brawl over Article 16, keeping the currency under duress.

On the other hand, the European Commission is scheduled to present its Autumn 2021 Economic Forecast later in the day. Also, the EcoFin meeting paired with the Industrial production data will offer some trading incentives to the cross. Eurozone economic releases are due for Friday, which could likely mpact the pair's value.

EUR/GBP Technical Levels

After the November 4 rally, the EUR/GBP daily chart looks promising. However, the daily chart shows a stronger resistance at 0.8581, 200-day Simple Moving Average (SMA). If that cracks, the higher target will be seen 0.8595 (one-week high) and 0.8624 (one-month high).

The price may reverse and continue a negative momentum to 100, 50, 21-day SMA; the support levels will be 0.8536, 0.8521 and 0.8483.

Following the Moving Average Convergence Divergence (MACD), the movement shows overly zealous bulls. The Relative Strength Index (RSI) looks cheerful and manages to stay well above the 50-line horizon.

Daily Chart

Additional Technical Levels