EURGBP trade idea

EURGBP trades in a narrow range between 0.83195 and 0.873715 for the past three days. Intraday bias remains neutral as long as resistance 0.8400 holds. It hits a high of 0.83720  and is currently trading around 0.83506.

The policy divergence between ECB and BOE puts pressure on the pair at a higher level.

Technicals-

The pair is trading below 34- and above 55 EMA in the 4- hour chart.

The near-term resistance is around 0.8353, a breach above targets 0.83720/0.83870 (23.6% fib)/0.8400/0.8435/8450/0.84650/0.84864 (38.2% fib of 0.8624 to 0.8399). Any close above 0.84860 confirms minor bullishness, a jump to 0.8540 is possible. The immediate support is at 0.8300, any violation below will drag the pair to 0.82470/0.8200.

Indicator (4-hour chart)

CCI (50)- Bearish

Average directional movement Index - Neutral

It is good to sell on rallies around 0.8378-80 with SL around 0.8400 for a TP of 0.8300.