EUR/GBP: Sell the Rallies as Bearish Trend Dominates

EURGBP trades below 0.84000 on strong pound sterling.  Intraday bias remains bearish as long as resistance 0.8500 holds. It hit an intraday low of 0.83773 and is currently trading around 0.83818.

ECB President Christine Lagarde said: 'Due to global economic disintegration and investor concerns over the impact of uncertain US policy, we believe that the euro has many potential strengths as an alternative to its historical value and therefore cannot be replaced by the US dollar.

Technical Analysis

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

Bearish Trend Confirmation: Any break below 0.83780 confirms an intraday bearish trend. A drop to 0.8340/0.8300 is likely.

Near-Term Resistance:  The near-term resistance is around 0.8420. Any violation above will take the pair to 0.8460/0.8500/0.8550/0.8605/ 0.8660/0.8765/0.8800.

Indicator Analysis (4-hour chart)

• CCI (50): Bearish
   
• Average Directional Movement Index:  Bearish

Trading Recommendation

It is good to sell on rallies around 0.84250 with SL around 0.8465  for a TP of 0.8300.