EURGBP declined slightly despite upbeat German IFO data. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a high of 0.83522 yesterday and is currently trading around 0.833342.
Germany's Ifo Business Climate Index rose to 86.5 from 85.4 in September, breaking a four-month downward trend and reflecting better business sentiment. This increase beat analysts' expectations and hints at a more hopeful outlook for the fourth quarter, though economic challenges remain, including recession fears and a projected 0.2% decline in economic output for 2024.
Technical Analysis
The pair is currently trading below the 34- and 55-EMA on the 4-hour chart.
- Bearish Trend Confirmation: If the price stays below 0.8300, it will confirm an intraday bearish trend. A drop to 0.8280 or 0.8235 is likely.
- Near-Term Resistance: Current resistance is around 0.8350. If it breaks above, we could see movement toward 0.8380, 0.8400, or 0.8435. The bearish outlook would be invalidated only if the price goes above 0.8435.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Trading Recommendation
It may be wise to sell on rallies around 0.8378 to 0.8380, with a stop loss set at 0.8435 and a target price of 0.8285.
