EURGBP showed a minor pullback after weak UK GDP data. Intraday bias remains bullish as long as support 0.8580 holds. It hits an intraday low of 0.86093 and is currently trading around 0.86350.
Bank of England Governor Andrew Bailey offered insights into the Bank's plans in changing economic surroundings at his presentation before the House of Lords Following a 0. 3% drop in April and missing market predictions of 0. 1% rise, UK GDP unexpectedly decreased by 0. 1% month over month in May 2025. Following a 0. 3% drop in April, this is the second consecutive monthly contraction; conceUK GDP surprisingly decreased by 0. 1% month-over-month in May 2025, missing market predictions of 0. 1% growth. This is the second straight monthly decline, which begs questions about a possible overall Q2 slowdown. Although the services industry expanded moderately, major decreases in industrial output (-0.9%), manufacturing (-1%), and construction (-0.6%) were the major drags on performance. If the economic downturn persists, the weaker-than-expected data could fuel speculation about a possible Bank of England rate reduction. The main drags on performance were notable declines in industrial output (-0.9%), manufacturing (-1%). , and construction (-0.6%), even though the services sector experienced minor growth. Should the economic slowdown persist, the less-than-expected results might spark ideas on a likely Bank of England rate cut.
Technical Analysis
The pair is currently trading above the 55 and 200-EMA and 365-EMA on the 4-hour chart.
Bearish Trend Confirmation: Any break below 0.8580 confirms an intraday bearish trend. A drop to 0.8520/0.8480/0.84425/0.8400/0.8378/0.8340/0.8300 is likely.
Near-Term Resistance: The near-term resistance is around 0.8680. Any violation above will take the pair to 0.8765/0.8800.
Indicator Analysis (4-hour chart)
CCI (50): Neutral
Average Directional Movement Index: Neutral
Trading Recommendation
It is good to buy on dips around 0.8580 with SL around 0.8520 for a TP of 0.8700/0.8765.
