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EUR/GBP dips as UK GDP beats expectation

FXStreet (London) - EUR/GBP has declined to fresh daily lows as UK GDP has come in better than expected QoQ for Q2.

The pair had quite a tepid start to the days trading, posting an overnight high at 0.7816, before steadily edging lower into the European session. German Unemployment stayed in line at 6.7%, while Italian Unemployment declined fractionally from 12.6% to 12.3%.

Meanwhile, UK GDP registered at 3.2% YoY, in line with forecasts and previous, while QoQ data beat expectations and the previous reading of 0.8%, coming in at 0.9%. The pair made an instant dip down to 0.7785, testing just below the daily S2 level at 0.7783, before retracing to where it is presently trading at 0.7795, just below the 0.7800 mark.

EUR/GBP Technicals

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish. RSI is in neutral territory at 26.47, down from it’s last hourly close at 35.20, while ADX is ranging above 30 at 26.16, down from 27.64 at the last hourly close.

Daily RSI sits at 32.64, in neutral territory.

The 200 SMA is currently at 0.7811, down from 0.7841 at the last period close, and declining on the hourly EUR/GBP chart. The EUR/GBP exponential closing price for the past 20 days is 0.7890, and trending lower.

Current price is 0.7799, with resistance ahead at 0.7800 (Yesterday's Low), 0.7807 (Monthly Low), 0.7807 (Weekly Low), 0.7807 (Annual Low) and 0.7807 (YTD Low). To the downside we see next support at 0.7797 (Daily Classic S1), 0.7786 (Daily Low), 0.7783 (Daily Classic S2), 0.7766 (Daily Classic S3) and 0.7765 (Weekly Classic S1).

Patternwise, we can see a Doji formation on the 1-hour .

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