EURGBP trade idea

EURGBP is trading bearish on a weak Euro. Intraday bias remains bearish as long as resistance 0.8400 holds. It hit a low of 0.83125 and is currently trading around 0.83269.

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

Eurozone Sep preliminary CPI came at  1.8% y/y in line with expectations from 2.2% previous month. Core CPI rose 2.7% vs 2.7 y/y expected. Prior 2.8%.

Technicals-

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

Any sustained break below 0.83120 confirms a bearish continuation. A dip to 0.82840 (161.8% fib retracement)/ 0.8264 (Apr 2022 low). 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.

Indicator (4-hour chart)

CCI (50)- Bearish

Average directional movement Index - Neutral

It is good to sell on rallies around 0.83550 with SL around 0.8385 for a TP of 0.8280.