EURGBP trades higher, good to buy above 0.8435
EURGBP showed a minor dead cat bounce on the weak pound sterling. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.82950 yesterday and is currently trading around 0.83416.
The UK flash PMI data for October 2024 shows declines in both the manufacturing and services sectors. The Composite PMI fell to 51.7, its lowest in 11 months, down from 52.6 in September. The Services PMI decreased to 51.8, below the expected 52.4, while the Manufacturing PMI dropped to 50.3, also below expectations and marking a six-month low.
The flash PMI data for Germany in October 2024 highlights ongoing struggles in the economy. The Composite PMI is expected to rise slightly to 47.7 from 47.5 in September, indicating continued contraction. The Manufacturing PMI remains low at 40.7, showing severe contraction in that sector. Meanwhile, the Services PMI is anticipated to hold steady at 50.6, suggesting stagnation in services.
Technicals-
The pair is trading below 34- and 55 EMA in the 4-hour chart.
Any sustained break below 0.8300 confirms the intraday bearish trend. A dip to 0.8280/0.8235 is possible. The near-term resistance is around 0.83500. A jump above targets 0.83805/0.8400/0.8435 is possible. Bearish invalidation is only above 0.84350.
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 0.8435 for a TP of 0.8285.
