EURGBP lost its shine after upbeat UK GDP data. Intraday bias remains bearish as long as the resistance 0.8660 holds. It hit an intraday low of 0.85963 and is currently trading around 0.86094.
Despite a 0.3% drop in output, the UK economy grew by 0.3% quarter-on-quarter in Q2 2025, a moderation from Q1's 0.7% expansion, mostly driven by a 0.4% increase in services and a 1.2% increase in construction. With actual GDP per capita also seeing a little quarterly 0.2% and annual 0.7% increase, real GDP grew 1.2% annually. Although the monthly GDP in June increased by 0.4%, business investment dropped by 4%, therefore partially offsetting gains, and household consumption remained subdued with a scant 0.1% rise. Though above the 0.1% predicted market growth, fundamental difficulties like low consumer spending, high business costs, and US tariffs point to a weak economic perspective, with growth remaining more muted.
Technical Analysis
The pair is currently trading below 55 and above 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 0.8520/0.8480/0.84465/0.8400 is likely.
Near-Term Resistance: The near-term resistance is around 0.8660. Any violation above will take the pair to 0.8700/0.8750/0.8800/0.8850.
Indicator Analysis (4-hour chart)
CCI (50): Bearish
Average Directional Movement Index: Bearish
Trading Recommendation
It is good to sell on rallies around 0.8618-20 with SL around 0.8660 for a TP of 0.8485.
