Two top European macro readings of the day have already been released. GDP data from both, the United Kingdom and Germany, turned out to be a positive surprise with growth turning out to be better-than-expected. UK GDP increased by 0.1% MoM in November while the market expected a drop of 0.2% MoM. Meanwhile, German GDP grew at a pace of 1.9% in 2022, better than 1.8% expected but slower than 2.6% reported for 2021.
While the UK release provided some lift for GBP, EUR has been mostly muted following German data. As a result a pullback on EURGBP pair can be observed with drop accelerating in the last hour. The pair is attempting to make a break below the support zone in the 0.8865 area, marked with previous price reactions and 50-hour moving average (green line). Should bears manage to push the pair below, the next target to watch will be the lower limit of the upward channel, currently in the 0.8855 area.
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Source: xStation5
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