EURGBP showed a minor pullback due to upbeat Eurozone CPI data. Intraday bias remains bearish as long as resistance 0.8650 holds. It hits an low of 0.84791 and is currently trading around 0.85256.
Eurozone inflation for April 2025 was better than expected as the headline CPI equaled that of March at 2.2% and core inflation at 2.7%, both higher than predicted. This was because rises in services inflation (3.9%) and food, beverages, and tobacco (3.0%) canceled out the deeper decline in energy prices (-3.5%). The ongoing strength in underlying price pressures, particularly in services, and the higher-than-expected core inflation reading could influence the policy of the European Central Bank in the future.
Technical Breakdown
The pair is currently trading above the 34- and below 55-EMA on the 4-hour chart.
Bearish Trend Confirmation: Any break below 0.8478 confirms an intraday bearish trend. A drop to 0.8450/0.8378/0.8300 is likely.
Near-Term Resistance: The near-term resistance is around 0.8550. Any violation above will take the pair to 0.8605/ 0.8660/0.8765/0.8800.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Trading Recommendation
It is good to sell on rallies around 0.8548-55 with SL around 0.86050 for a TP of 0.8380.
