EUR/GBP Defies UK Retail Boom: Bullish Surge to 0.8800 Awaits

EURGBP holds above 0.8700 despite strong UK retail sales. Intraday bias  remains bullish as long as support  0.8600 holds. It hits an  intraday high of 0.87287 and is currently trading around 0.87153.

Strong clothing and internet retail sales, driven by a 0.5% month-on-month rise in UK retail sales volume in August 2025, match July's revised growth. The Office for National Statistics claims that back-to-school demand and good weather contribute to the annual decline in retail sales. from 0.8% in July, a 0.7% yearly decrease indicates a cautious consumer view in light of more general economic difficulties.G

Technical Analysis

The pair is currently trading above 55 and 200- EMA and  365-EMA on the 4-hour chart.

Bearish Trend Confirmation: Any break below 0.8650 confirms an intraday bearish trend. A drop to 0.8600/0.8560/0.8520/0.8480 is likely.

Near-Term Resistance:  The near -term resistance is around 0.8730. Any violation above will take the pair to 0.8750/0.8800/0.8850.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Bullish

Trading Recommendation

It  is good to buy on dips around 0.8680 with SL around 0.8630 for a TP of 0.8760/0.8800.