EURGBP trades higher despite strong UK GDP data. Intraday bias remains bullish as long as support 0.8650 holds. It hits an intraday high of 0.8720 and is currently trading around 0.85839.
The UK GDP rose by 0.5% in February 2025, beating economists' expectations and recording its highest monthly increase in eleven months, led by broad gains in services, manufacturing, and construction. The growth, with services rising 0.3%, manufacturing by 1.5%, and construction by 0.4%, marks a welcome return to economic activity, as GDP was 1.4% above a year earlier and rose 0.6% over the three months to February. But this positive motion is ahead of economic adversity, including the potential effect of imminent U.S. tariffs to elevate the cost of British exports.
Technical Analysis
The pair is currently trading above the 34- and below 55-EMA on the 4-hour chart.
Bearish Trend Confirmation: Any break below 0.86500 confirms an intraday bearish trend. A drop to 0.8600/0.85700/0.85270/0.8500 is likely.
Near-Term Resistance: The near -term resistance is around 0.8720. 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 0.8650 with SL around 0.85980 for a TP of 0.8765.
