EURGBP trades higher on a strong Euro. Intraday bias remains bullish as long as support 0.8580 holds. It hits an intraday low of 0.86296 and is currently trading around 0.86326.
With GDP down 0. 3% in April, the UK economy slowed substantially in Q2 2025, mostly as a result of contraction in the services sector. The labor market also weakened, as seen in fewer paid employees and open positions. Inflation stayed high despite this economic stagnation, exceeding the Bank of England's 2% objective as a result of rising transportation, water, and energy prices. In May and June, however, consumer and business confidence showed modest improvements, and the Bank of England kept its policy rate at 4. 25%, implying possible rate reductions if inflation risks reduce.
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 0.8580 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): Bullish
Average Directional Movement Index: Bullish
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.
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